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Essay / Research Paper Abstract
This 14 page paper looks at what constitutes knowledge and what is knowing receipt discussing what it is, when a liability is incurred by the trustee or individual with a fiduciary duty and to a third party or recipient, including personal liability and the duty of preservation. Cases cited include, but are not limited to The Baden Case [1992], Agip (Africa) Ltd v Jackson [1992] and BCCI v Akindele [2001]. The bibliography cites 8 sources.
Page Count:
14 pages (~225 words per page)
File: TS14_TEknowing.rtf
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Unformatted sample text from the term paper:
can make against the trustee or the person with the fiduciary duty as well as having a potential claim against a third party with an equitable proprietary claim as well
as a potentially personal claim for knowing receipt. The way this is seen is dependant on knowledge and knowing receipt. To define knowledge we can look at The
Baden Case (1992) 4 All ER 161, 235-248 may help when seeking to ascertain what levels of knowledge can be found. These are five types of knowledge and are usually
referred to as Baden (i) Baden (ii) etc (Matthews, 2001). The first type, type i, is that of actual knowledge. This is self explanatory (Matthews, 2001).
The second type of knowledge, type ii, also known as Nelsonian knowledge, is where there is a wilful shutting ones eyes to the obvious (Matthews, 2001).
This prevents ignorance being used a defence when it is apparent that an individual sought to actively ignore information that would have been very obvious (Matthews, 2001). The
third type, type iii, is also referred to as naughty knowledge. This is where the recipient fails to make reasonable enquires as would be expected of a reasonable and honest
man (Matthews, 2001). This is a step beyond type ii, but is also a failure on the part of the recipient to make more active investigation (Matthews, 2001). The forth
type, type iv, is also known as constructive knowledge. This is where there have been indication or the circumstances are such tat the recipient, if they were an honest and
reasonable man may pick up on the facts, even though not told them and not having undertaken specific investigation (Matthews, 2001). The fifth type is that knowledge of circumstances,
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