Fletcher v Fletcher [1844] 4 Hare 67

Facts

  • Ellis Fletcher made a voluntary covenant, under seal and without consideration, to pay £60,000 to trustees for the benefit of his illegitimate sons.
  • Upon Ellis Fletcher's death, a dispute arose over whether the covenant could be enforced as a trust.
  • The plaintiffs, representing the intended beneficiaries, claimed the covenant created a binding trust.
  • The defendants argued the covenant was merely a voluntary, unenforceable promise lacking legal effect, due to the absence of consideration.
  • The court needed to determine if the covenant fulfilled requirements for a valid trust, including certainty of intention and identifiable trust property.

Issues

  1. Whether a voluntary covenant without consideration can create a trust enforceable in equity.
  2. Whether the covenant demonstrated sufficient certainty of intention to create a trust.
  3. Whether the subject matter and beneficiaries were sufficiently certain to establish a valid trust.
  4. Whether equity could enforce the covenant as a trust despite the absence of consideration.

Decision

  • The court held that the voluntary covenant did create a binding trust.
  • It was found that the necessary certainties—intention, subject matter, and objects—were satisfied.
  • The court determined that equity could enforce the covenant as a trust, notwithstanding the lack of consideration.
  • The judgment favored the plaintiffs, allowing enforcement of the covenant for the benefit of the intended beneficiaries.

Legal Principles

  • A voluntary covenant may create a trust if there is clear intention, identifiable trust property, and definite beneficiaries.
  • Certainty of intention can be inferred from the language of the covenant and the surrounding circumstances.
  • The absence of consideration does not prevent equity from enforcing a trust when the three certainties are satisfied.
  • Equity may act to ensure the settlor's intentions to benefit others are implemented, even if the requirements of contract law are unmet.

Conclusion

Fletcher v Fletcher [1844] 4 Hare 67 clarified that equity will enforce a voluntary covenant as a trust when the requirements of certainty and clear intention are present, regardless of the absence of consideration, reaffirming the flexibility of equity in trust law.

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