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.