“Gifts to unincorporated associations valid as beneficial gifts to members under contract-holding theory.”
A testatrix left her residuary estate to an anti-vivisection society, which was an unincorporated association. The society had dissolved by the time of her death, raising questions about the validity and destination of the gift.
How should gifts to unincorporated associations be construed, and what happens when such an association dissolves before the gift takes effect?
Brightman J held that gifts to unincorporated associations should be construed as gifts to the members at the date of the gift, subject to their contractual rights and duties under the association's constitution. Since the association had dissolved, the gift failed and fell into residue.
This case provided the theoretical foundation for validating gifts to unincorporated associations through the contract-holding theory. It remains the leading authority on this area and is essential for understanding how the law deals with gifts to clubs, societies, and other informal associations.
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OSCOLA Citation
Re Recher's Will Trusts [1972] Ch 526
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