Part III Modernity, 7 Supervising Non-Performance
- Performance of contract — Termination/unwinding of contract
This chapter argues that a fundamental duty of trustees is to perform the trust upon assuming the office of trustee. But the duty to adhere strictly to the settled terms of a trust occasionally conflicts with the broader purpose of the trust, especially when the trust must be performed over a lengthy amount of time. Rather than bluntly resolving that tension in favour of strict performance according to the settled terms, the Court exercises its supervisory jurisdiction over trust administration by enlarging the powers of trustees and sanctioning breaches of trust, both prospectively and retrospectively, and authorising variations and terminations. These aspects of the supervisory jurisdiction over trust administration exhibit that trusts are not simple accounting relationships, but become autonomous legal institutions that require continuous supervision.