- Published on
Equity and Trust – Rectification
Case Scenario
Margaret creates a lifetime trust worth £12 million for the benefit of her three children. She instructs her solicitor that all grandchildren should also benefit equally from future trust income.
When the trust deed is drafted, the solicitor mistakenly omits the clause referring to the grandchildren. As a result, the final trust deed provides benefits only to Margaret’s children.
Several years later, one grandchild applies to court arguing that the written trust deed does not reflect Margaret’s true intentions.
Separately, Edward dies leaving a will prepared by his solicitor. Edward intended to leave:
Sophia applies to court seeking rectification of the will.
The court must determine whether the documents should be corrected.
Rectification
Definition
Rectification is an equitable remedy allowing the court to correct a written document where the document fails to reflect the true intentions of the parties, settlor, or testator.
The purpose is not to rewrite the agreement or trust entirely.
Instead, rectification corrects mistakes so the document accurately records what was genuinely intended.
Common Situations Where Rectification Applies
Rectification commonly arises in relation to:
Grounds for Rectification
Rectification may be granted where the document contains errors caused by:
Rectification in Trust Law
Trust Deeds
Rectification may apply where a trust deed fails to reflect the settlor’s actual intentions.
This often occurs because:
Application to the Scenario
Margaret intended her grandchildren to benefit from the trust.
However:
Rectification of Wills
Rectification may also apply to wills.
If the wording of the will fails to reflect the testator’s instructions due to mistake or drafting error, the court may correct the wording.
Application to the Scenario
Edward intended:
The court may rectify the will so it reflects Edward’s actual instructions.
Fraud as a Ground for Rectification
Rectification may also arise where documents are distorted through fraudulent conduct.
This principle appears in Collins v Elstone.
Mistake as a Ground for Rectification
Modern cases commonly involve mistakes in drafting or recording intentions.
Examples include:
Important Cases
RBC Trustees v Stubbs
Important for rectification involving mistakes in trust arrangements.
Millar v Millar
Important for rectification and interpretation of testamentary intentions.
Lawie v Lawie
Important for solicitor drafting errors and rectification of voluntary settlements.
Burden of Proof
The burden of proof rests on the person seeking rectification.
This is commonly:
Difference Between Rectification and Rescission
Rectification
Corrects the document.
The transaction remains valid but is amended to reflect true intention.
Rescission
Sets aside or unwinds the transaction entirely.
The transaction is effectively cancelled.
Difference Between Rectification and Construction
Construction
The court interprets ambiguous wording.
Rectification
The court corrects wording because it was wrongly recorded.
Solving the Case Scenario
Issue 1 – Trust Deed Error
Margaret clearly intended the grandchildren to benefit.
The omission occurred because of solicitor drafting error.
The court would likely rectify the trust deed to include the grandchildren.
Issue 2 – Mistaken Percentages in the Will
Edward’s instructions were incorrectly recorded.
The court would likely rectify the will so that:
Key SQE Principles
Rectification:
It merely corrects the written expression of the existing intention.
Conclusion
Rectification is an important equitable remedy used to correct mistakes in written legal documents where the wording fails to reflect the true intentions of the parties, settlor, or testator. It commonly applies to trust deeds, wills, and contracts, particularly where drafting errors, misunderstandings, or fraud distort the intended arrangement. The remedy protects fairness and ensures that legal documents accurately implement the intentions originally intended by those creating them.
Case Scenario
Margaret creates a lifetime trust worth £12 million for the benefit of her three children. She instructs her solicitor that all grandchildren should also benefit equally from future trust income.
When the trust deed is drafted, the solicitor mistakenly omits the clause referring to the grandchildren. As a result, the final trust deed provides benefits only to Margaret’s children.
Several years later, one grandchild applies to court arguing that the written trust deed does not reflect Margaret’s true intentions.
Separately, Edward dies leaving a will prepared by his solicitor. Edward intended to leave:
- 40% of his estate to his daughter Sophia;
- 60% to his son Daniel.
Sophia applies to court seeking rectification of the will.
The court must determine whether the documents should be corrected.
Rectification
Definition
Rectification is an equitable remedy allowing the court to correct a written document where the document fails to reflect the true intentions of the parties, settlor, or testator.
The purpose is not to rewrite the agreement or trust entirely.
Instead, rectification corrects mistakes so the document accurately records what was genuinely intended.
Common Situations Where Rectification Applies
Rectification commonly arises in relation to:
- contracts;
- trust deeds;
- wills;
- voluntary settlements.
Grounds for Rectification
Rectification may be granted where the document contains errors caused by:
- mistake;
- drafting errors;
- clerical errors;
- fraud;
- misunderstanding in recording instructions.
Rectification in Trust Law
Trust Deeds
Rectification may apply where a trust deed fails to reflect the settlor’s actual intentions.
This often occurs because:
- solicitors draft the document incorrectly;
- instructions are misunderstood;
- important clauses are omitted.
Application to the Scenario
Margaret intended her grandchildren to benefit from the trust.
However:
- the solicitor omitted the relevant clause;
- the written deed does not reflect Margaret’s true intention.
Rectification of Wills
Rectification may also apply to wills.
If the wording of the will fails to reflect the testator’s instructions due to mistake or drafting error, the court may correct the wording.
Application to the Scenario
Edward intended:
- Sophia to receive 40%;
- Daniel to receive 60%.
The court may rectify the will so it reflects Edward’s actual instructions.
Fraud as a Ground for Rectification
Rectification may also arise where documents are distorted through fraudulent conduct.
This principle appears in Collins v Elstone.
Mistake as a Ground for Rectification
Modern cases commonly involve mistakes in drafting or recording intentions.
Examples include:
- tax planning errors;
- drafting omissions;
- incorrect percentages;
- mistaken beneficiary descriptions.
Important Cases
RBC Trustees v Stubbs
Important for rectification involving mistakes in trust arrangements.
Millar v Millar
Important for rectification and interpretation of testamentary intentions.
Lawie v Lawie
Important for solicitor drafting errors and rectification of voluntary settlements.
Burden of Proof
The burden of proof rests on the person seeking rectification.
This is commonly:
- a beneficiary;
- a potential beneficiary;
- the settlor;
- or parties affected by the mistake.
- the written document does not reflect the true intention;
- a genuine mistake occurred.
Difference Between Rectification and Rescission
Rectification
Corrects the document.
The transaction remains valid but is amended to reflect true intention.
Rescission
Sets aside or unwinds the transaction entirely.
The transaction is effectively cancelled.
Difference Between Rectification and Construction
Construction
The court interprets ambiguous wording.
Rectification
The court corrects wording because it was wrongly recorded.
Solving the Case Scenario
Issue 1 – Trust Deed Error
Margaret clearly intended the grandchildren to benefit.
The omission occurred because of solicitor drafting error.
The court would likely rectify the trust deed to include the grandchildren.
Issue 2 – Mistaken Percentages in the Will
Edward’s instructions were incorrectly recorded.
The court would likely rectify the will so that:
- Sophia receives 40%;
- Daniel receives 60%.
Key SQE Principles
Rectification:
- is an equitable remedy;
- corrects written mistakes;
- ensures documents reflect true intentions;
- commonly applies to trusts, contracts, and wills.
It merely corrects the written expression of the existing intention.
Conclusion
Rectification is an important equitable remedy used to correct mistakes in written legal documents where the wording fails to reflect the true intentions of the parties, settlor, or testator. It commonly applies to trust deeds, wills, and contracts, particularly where drafting errors, misunderstandings, or fraud distort the intended arrangement. The remedy protects fairness and ensures that legal documents accurately implement the intentions originally intended by those creating them.
0 Comments