ABSTRACT

The most significant overlap between commercial activity and the law of trusts (as commonly understood by commercial lawyers in terms of sale of goods, loan contracts and so forth) relates to taking title in goods and to the acquisition of security as part of a transaction. Typically the issue is as follows: in creating a commercial contract, how do the parties acquire or retain title (as appropriate) in property which is used or transferred for the purposes of that contract? This chapter considers the manner in which contract law and the law of trusts variously deal with these questions.