ABSTRACT

A trust which arises in circumstances involving an illegality, or which is perceived to be contrary to acceptable societal standards, will not be enforceable in equity. Equity will not enforce a trust, even if it is properly created, where that trust has the effect of performing or encouraging an illegality. The rationale for this is quite clear. Equity is a jurisdiction centred around justice and fairness, and it would be against the conscience of a court of equity to enforce a trust in circumstances where it has the effect of promoting immoral or illegal behaviour. A number of equitable maxims may be drawn upon in this regard, including: ‘equity will only protect those that come with clean hands’; and ‘a person who seeks equity must do equity’.