When To Cry, “Sham!”

TABLE OF CONTENTS

Introduction 3

Objective 6

Chapter 1: The trust concept 10

1.1 A brief history of the origins of trust 10

1.2 Development through legislation 11

1.3 What is a trust? 13

1.4 Development through case law 14

Chapter 2: The elements of a valid trust 20

2.1 The essential elements for creation of a valid trust 20

2.2 Intention to create a trust 23

2.2.1 Intention manifested by the deed – form 24

2.2.2 Intention manifested by administration – substance 25

Chapter 3: The courts’ approach to providing equitable remedies 27

3.1 The Parker case 27

3.2 The Badenhorst cases 30

3.3 The Britz case 34

3.4 Translocation of company law principles into trust law 36

3.5 The Van der Merwe case 38

3.6 Challenging the trust on the basis of contract law 39

3.7 Offshore case law 41

Chapter 4: The doctrines of sham and substance-over-form 43

4.1 What is a sham? 43

4.2 Substance-over-form 47

Chapter 5: Conclusions 53

Bibliography 59