Question
Oil Ltd owns three onshore storage tanks of crude oil in Aberdeen and they own the oil in those tanks. The tanks are labelled Tank
Oil Ltd owns three onshore storage tanks of crude oil in Aberdeen and they own the oil in those tanks. The tanks are labelled Tank A, Tank B and Tank C. Each tank contains 50 tonnes of crude oil. The tanks all sit in the oil reservoir as shown in the picture below. Six months ago, Oil Ltd sold Tank A with its 50 tonnes of oil to Tina Ltd company, 26 tonnes from Tank B to another trader (Martin) and 25 tonnes from Tank C to Emily who is also a trader. Tina Ltd have already collected their oil and possessed Tank A, but Emily and Martin have not collected their oil yet.
Two months ago, Oil Ltd wrote and sent a signed letter to their employee Bassam, who has worked in the company for 20 years, stating:
'As a reward for your hard work, we hold 25 tonnes of our crude oil in onshore storage in Aberdeen for your benefit so any income, such as the rise of oil prices, will be yours and once they will be sold we will account the money for you'.
Two months ago, Oil Ltd also wrote and sent a signed letter to their employee Andrew, who has worked in the company for 10 years, stating:
'As a reward for your hard work we hold 25 tonnes of our crude oil in Tank B on the onshore storage in Aberdeen for your benefit so any income, such as the rise of oil prices, will be yours and once they will be sold we will account the money for you'.
Oil Ltd argues that a valid trust was not made for Bassam and Andrew as the crude oil was not segregated. Advise Bassam and Andrew as to whether a valid trust was created for them.
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