This course aims to focus on the role of equity and trusts in the context of commercial transactions in common law jurisdiction. It does so by a selective topic where equity and trusts are applied to strengthen the financial instruments (i.e. bond, securitisation), to offer proprietary rights (ownership right than priority) in the event of counterparty's insolvency, and ancillary remedies to the common law claim. With the above in mind, the course also offers a comparative perspective on how equity and trusts address the legal issues that could be borrowed into civil law jurisdiction. This is particularly important for Hong Kong, where its legal system is based on common law, and how the system interacts with the mainland civilian system in a long-term and sustainable way. Therefore, the course will involve identifying the issue arising out of trust concepts and other comparative theories, such as dual patrimony being offered in other civilian jurisdictions.

This course aims to

• examine the nature, role and significant application of Equity and Trusts in commerce;
• develop a critical knowledge of the vital role that Equity and Trusts have in the modern commercial transactions such as fiduciary duty, relations, following assets, protection of investment account etc.,
• develop the following set of skills in relation to the law of equity, including trusts:
  • research skills
  • analytical and problem-solving skills
  • effective written communication skills
• develop an awareness of the social and commercial contexts in which equity and trusts law operates;
• introduce students to some of the basic practical skills required to advise on the application of trusts law in commerce.

Examination: Students' ability to apply legal rules and principles to particular sets of hypothetical circumstances will be tested. The use of Generative AI tools is not allowed.

Applicable to students admitted before Semester A 2022/23 and in Semester A 2024/25 & thereafter

Students must obtain a minimum mark of 40% in both coursework and examination and an overall mark of 40% in order to pass the course.

Applicable to students admitted from Semester A 2022/23 to Summer Term 2024

Students must obtain a minimum mark of 50% in both coursework and examination and an overall mark of 50% in order to pass the course.