Chapter 1: Introduction to the Law of Trusts A. Historical Background • Early medieval period practice • Problem of locus standi before Courts for remedy if these third parties failed to comply with the terms of use. • Why Trusts? Possible uses… • Apart from deliberately created trusts, there exist also resulting trusts i.e. where the court infers the existence of a relationship of trustee and beneficiary, and constructive trusts i.e. where the court imposes a relationship of trustee and beneficiary as a result of misconduct by the person held to be a trustee. • The advantages of trusts: i) flexibility of purpose ii) rules governing trusts are mainly the same whatever the purpose.

B. Definition of Trusts i) Doctrine ii) Hague Convention on the Law Applicable to Trusts on their Recognition:
Article 2 defines the term ‘trust’:
“Article 2
For the purposes of this Convention, the term "trust" refers to the legal relationships created – inter vivos or on death – by a person, the settlor, when assets have been placed under the control of a trustee for the benefit of a beneficiary or for a specified purpose.
A trust has the following characteristics –
a) the assets constitute a separate fund and are not a part of the trustee's own estate;
b) title to the trust assets stands in the name of the trustee or in the name of another person on behalf of the trustee;
c) the trustee has the power and the duty, in respect of which he is accountable, to manage, employ or dispose of the assets in accordance with the terms of the trust and the special duties imposed upon him by law.
The reservation by the settlor of certain rights and powers, and the fact that the trustee may himself have rights as a beneficiary, are not necessarily inconsistent with the existence of a trust.”
So here it refers to “the legal relationship created […] by a person, the settlor, when assets have been placed under the