Rectification and trusts: a Cayman Islands perspective
Rectification is about ‘putting the record straight’. It is an equitable remedy by which the court can order that the wording of a document is rectified so that it reflects the true intentions of the parties. That does not mean, however, that the court can re-write history should one of the parties subsequently have a change of heart. Rather, it is a means by which the words of the document can be changed to reflect what was actually agreed between the parties.
In the trusts context, imagine that Mr A decides to settle his farm in Devon and his town house in London on trust for his five children and executes a trust deed governed by English law which he believes carries those wishes into effect. Fifteen years later he discovers that, owing to a drafting error, only the town house in London is in fact settled on trust. In those circumstances Mr A could ask the English court to exercise its discretion to rectify the trust deed so that it reflects Mr A’s intentions on the date he executed the document. As the English court held in Allnutt v Wilding: ‘…In the case of a voluntary settlement, rectification involves bringing the trust document into line with the true intentions of the Settlor as held by him at the date when he executed the document.’
Given the likely repercussions for Mr A, his five children and the trustees of his settlement having acted for the last 15 years on the basis that both properties were settled on trust, it is easy to see why rectification can be such a welcome remedy…
Click on the link below to read the rest of the Mourant Ozannes briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Mourant Ozannes
News from The Lawyer
Briefings from Mourant Ozannes
A creditor who obtains a Cayman Islands judgment against a debtor for the payment of money has a number of options to enforce that judgment
The recent English Court of Appeal ruling in Re Danka Business Systems plc considers how insolvency practitioners ought to deal with contingent claims.