## Facts

- The case arose from a dispute in the Chancery Division of the High Court regarding a settlement created by deed.
- The settlor covenanted to transfer certain property into a trust for the benefit of specified individuals.
- The beneficiaries in question were volunteers, meaning they had not provided consideration for the covenant.
- A key issue was whether the necessary formalities to create a valid trust had been completed.
- The beneficiaries sought to enforce the settlor’s promise under the deed.

## Issues

1. Whether volunteer beneficiaries (who have not given consideration) can enforce a covenant made by the settlor to transfer property into a trust.
2. Whether the settlor's covenant created a valid and enforceable trust even in the absence of completed formalities.
3. How the principles of privity of contract and the maxim "equity will not assist a volunteer" apply to the enforcement of such covenants in trust law.

## Decision

- The court held that volunteer beneficiaries could not enforce the settlor’s covenant.
- It was determined that equity will not assist a volunteer; those who have not provided consideration cannot enforce a covenant unless supported by a valid trust or equitable interest.
- The court found that the settlor’s covenant did not establish a trust because the necessary formalities and property transfer had not been completed.
- As a result, beneficiaries who were volunteers could not claim enforcement of the covenant.

## Legal Principles

- Only parties to a contract may normally enforce its terms, per the doctrine of privity of contract.
- Equity will not assist a volunteer; a third-party beneficiary who has not provided consideration cannot enforce a covenant unless there is a valid trust or equitable interest.
- The intention to create a trust and compliance with necessary formalities are required to establish an enforceable trust.
- A covenant alone, without proper execution and demonstrated trust intention, does not confer equitable rights on volunteer beneficiaries.
- Comparative cases highlight that exceptions may turn on specific facts, but the general principle from this case remains that mere promises or incomplete formalities are insufficient for volunteers.

## Conclusion

Re Kay's Settlement [1939] 1 Ch 329 confirms that volunteer beneficiaries cannot enforce a settlor’s covenant unless a trust is validly constituted with the required formalities, reaffirming that equity will not assist a volunteer and clarifying the interplay between contract and trust law in this context.