Part A

Terry is a trustee of a trust fund of which Bonny is the beneficiary. Terry transfers $100,000 from the Trust Account into his savings account, which had in it at that time $40,000 of Terry's own funds. The following transactions occur all in relation to Terry's savings account, one each day. The figures represent thousands (000's) of dollars. The opening balance is $140 (meaning $140,000). 1. Terry withdrew $30 to purchase shares as an investment, which shares he still owns and which are now worth $32. 2. Terry withdrew a sum of $50, which he used to purchase an antique book. Terry donated the book to the Council Library, which still owns it. The book has been valued as now being worth $30. 3. Terry deposited into the account $20 stolen from the C Trust, of which Terry is also trustee. 4. Terry deposited $20 of its own funds into the account. 5. Terry withdrew $52 in order to purchase a racehorse called "Unjust Enrichment" (which died shortly thereafter and is now dead and buried). The final balance is therefore $48. Advise Bonny as to all of her rights and remedies in equity, against all possible parties, as a result of the above events.

Part B

Elmar and Daffy are boyfriends. Elmar and Daffy, and Elmar's mother, Bugsy, decide to purchase a house for $500,000. Bugsy provides $300,000 of the purchase price. Elmar provides $100,000 of the purchase price. The remaining $100,000 is provided from moneys obtained on a personal loan taken out in the name of Elmar and Daffy repayable by both of them. Title to the house is put into the names of Bugsy and Elmar as tenants in common in equal share. A week later, Elmar states to Daffy that his legal title in the house "is as much yours as it is mine". A week later, a major family fight results in the breakdown of the relationships between them. The house has now been sold for $600,000. In the absence of any other evidence, who is entitled to the proceeds of the sale and in what proportion?

Part C

Fiona is the trustee of the Fiona trust, the terms of which state that the trust property is held on trust "for such of Fiona's children as she, in her absolute discretion, must appoint". Without informing any of her other children, Fiona appoints all of the trust property to her youngest daughter. What advice would you give to her other children?