Paul v Constance [1977] 1 WLR 527 is an important English trust law case. It sets out what will be sufficient to establish the first of the "three certainties" necessary for a trust

Trust law

In common law legal systems, a trust is a relationship whereby property is held by one party for the benefit of another...

 (certainty of intention). It is necessary that a settlor

Settlor

In law a settlor is a person who settles property on trust law for the benefit of beneficiaries. In some legal systems, a settlor is also referred to as a trustor, or occasionally, a grantor or donor. Where the trust is a testamentary trust, the settlor is usually referred to as the testator...

's "words and actions ... show a clear intention to dispose of property ... so that someone else acquires a beneficial interest."

Facts

Mr Constance, deceased, set up a bank account in his own name. On many occasions he stated to his de facto partner

Domestic partnership

A domestic partnership is a legal or personal relationship between two individuals who live together and share a common domestic life but are neither joined by marriage nor a civil union...

 Mrs Paul (the plaintiff

Plaintiff

A plaintiff , also known as a claimant or complainant, is the term used in some jurisdictions for the party who initiates a lawsuit before a court...

), that "The money is as much yours as mine." Mr Constance was still legally married to Mrs Constance (the defendant

Defendant

A defendant or defender is any party who is required to answer the complaint of a plaintiff or pursuer in a civil lawsuit before a court, or any party who has been formally charged or accused of violating a criminal statute...

). Mr Constance died intestate

Intestacy

Intestacy is the condition of the estate of a person who dies owning property greater than the sum of their enforceable debts and funeral expenses without having made a valid will or other binding declaration; alternatively where such a will or declaration has been made, but only applies to part of...

, and his assets including the account passed to the defendant. This statement itself was not sufficient to imply a trust was created. One of the key facts was that both Mr Constance and the claimant played bingo and both parties paid their bingo winnings into this account. Their conduct in this situation implied to the court that Mr Constance did intend this to be a trust.

Judgment

To establish a trust, there must be sufficient certainty of intention that the settlor is granting a beneficial interest

Beneficial interest

A beneficial interest is "that right which a person has in a contract made with another" person. The typical example is "if A makes a contract with B that he will pay C a certain sum of money, B has the legal interest in the contract, and C the beneficial interest." More generally, a beneficial...

 to the beneficiary

Beneficiary

A beneficiary in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example: The beneficiary of a life insurance policy, is the person who receives the payment of the amount of insurance after the death of the insured...

. This can be expressed orally

Oral contract

An oral contract is a contract the terms of which have been agreed by spoken communication, in contrast to a written contract, where the contract is a written document...

, and no particular form of words or conduct are necessary. The word 'trust' need not be used.
However, an imperfect gift (as in Jones v Lock) does not show sufficient certainty of intention.