A trust is not a contract of agency to hold the property, as in that case there would be no transfer of the property. In trust there is a transfer from the owner to the trustee subject to certain terms and conditions. Bailment is also a kind of trust, but in bailment also there is no transfer of any interest in the property, but only a transfer of possession without ownership. Thereof, a trust is essentially a transfer of property by one to the other to be held by the other for the benefit of some person or for carrying out some object. It is no also a sale because a sale cannot be conditional and in sale there is consideration which is absent in a trust. The purpose of a trust must be lawful, that is,
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It should not be forbidden by law. |
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It should not be of such nature that, if permitted it could defeat the provisions of any law. |
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It should not be fraudulent. |
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It should not involve or imply injury to the person or property of another or |
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It should not be such as would be regarded by a court as immoral or opposed to the public policy. |
Where a trust is created for two purposes one of which is lawful and the other is not and the two purposes cannot be separated, the whole trust is void.
