The Wider Ambit of the Quistclose Doctrine

Abstract

The Quistclose doctrine has largely been applied conservatively in English law. On a proper analysis, however, it has a wider basis than commonly presupposed. The Quistclose doctrine is better understood when it is recognised that that doctrine and the doctrine in Rochefoucauld v Boustead share the same basis: both doctrines respond to the same legally causative events and yield similar legal responses. This renewed understanding resolves many of the main deficiencies in our current understanding of the Quistclose doctrine, and illuminates our understanding of the principle underlying the two doctrines.

Keywords: Quistclose trust, Rochefoucauld v Boustead, Event and response, Intention, Insolvency, Promise, Reliance