Jones v Lock [1865]

Facts

• A father, while away on a business trip, was chastised by his family for failing to bring a gift for his newborn son.

• In response, he wrote a cheque for £900 as a gift for his child.

• The cheque was then placed in the father's safe, and he died six days later before any further action was taken with it.

Outcome

• The court had to decide who owned the cheque: the father or the son.

• It was clear that the father had intended to make a gift to his son, but merely handing over a cheque was not sufficient to transfer title to the money.

• To effectuate the gift, the father would have had to endorse the cheque (signing the back), but he did not do so.

• The Court of Appeal held that the father’s words should not be construed as an intention to create a trust.

• The court refused to treat the failed gift as a trust, meaning the gift was not perfected.

Impact and Analysis

• This case highlights the principle that for a gift to be legally effective, the donor must take steps to transfer legal title, such as endorsing a cheque.

• The ruling underscores that a failed gift cannot be "rescued" by interpreting it as a trust.

• It reinforces the principle that equity will not intervene to perfect an incomplete or imperfect gift, particularly when there is no intention to create a trust.

• The case is often cited in discussions about imperfect gifts and the need for clear intention and formal steps to effectuate the transfer of property or money.