Re Kayford podcast notes PDF

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Notes of Re Kayford case...

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Re Kayford podcast notes   

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Three certainties – certainty of intention When the company became insolvent, what wasn’t the customer’s money available to all the creditors? When a company becomes insolvent, they cannot pay all of their debts. The company may have assets such as its premises and cash but it cannot pay what it owes to everyone and continue as a business – financially not viable. Money is owed to creditors. Insolvency – sharing company’s assets. Creditors may get less than they were originally owed. If somebody claims that there were goods/money held on trust for them, then it wouldn’t be available to the creditors. In Re Kayford, Company was in trouble and was advised to put customers money into an account that it wasn’t using. They did this which indicated that the company wanted to safeguard the money for the customers. Court held there was certainty of intention to set up a trust. If it was a trust, the money would not be available to pay the creditors as the money was not theirs, but for the customers. The customers have a right to the money first because it is their money, not the company’s money. The company can only pay creditors with its own money....