(c) For life salvage in respect to the lives of the crew of a British ship which was lost with all its

cargo.

(d) To have accounts taken of the earnings of a ship registered in New Zealand, but temporarily in Victorian waters, as between co-owners resident here.

12. (a) Can a solicitor bind his client by a reference to arbitration?

(b) May the terms of a submission be altered by the arbitrator?

(c) What is the effect of an award in excess of the submission?

(d) Section 17 of the Arbitration Act 1889 provides that a submission shall have the same effect in all respects as if it had been made a rule of Court." Explain the simplification in the law introduced into England by this section.

EQUITY AND INSOLVENCY.

Mr. Neighbour.

Reasons must be given for the answers.

1. Write a short Essay on each of the following subjects:

(a) The doctrine of election under powers of appointment.

(b) The survivorship of a trust.

(c) The amendments of the Law of Insolvency introduced by the Insolvency Act 1897.

2. A owed B £50. C was indebted to A in a larger sum. A gave B an order, duly signed, directed to C, and in the terms following:

66 Please pay B the amount of his account £50, for goods delivered to me at Melbourne."

B brings an action on this order. Is B. entitled to recover the amount from C?

3. The owner of an estate, part of which was subject to a contract of sale, executed a mortgage upon it. The mortgagee gave notice of the mortgage to the purchaser, but in all other respects left matters as they were before the mortgage. The purchaser was bound by the contract to pay certain sums at stated intervals, together with interest on all that remained unpaid. He made several of these payments, but at length declined to complete, on the ground that he had been induced to enter into the contract by representations which had not been fulfilled. Assuming that the purchaser could not have been compelled to specific performance of his contract, had he any remedy against the mortgagee?

4. W, the owner in fee of certain real estate, prior to May deposited the title deeds with G to secure an advance of £200 and interest.

On the 1st of that month W gave a legal mortgage to B on the same property to secure a debt he owed to B, subject to the security to G. On the 3rd May notice of the mortgage to B was given to G.

On the 17th June W made another indenture of mortgage to R for an advance then made. The mortgage to B was not recited in this last deed, and R, at the time of his advance, had no

notice actual or constructive of the mortgage to B. Neither B nor G had any notice of the mortgage to R. The mortgage to R was carried out by an agent, and portion of the money was advanced for the purpose of paying off G's charge and interest, the balance to be paid to W. G being paid off, the title deeds were handed to W, who gave them to the agent, from whom they were received by R. The balance of R's advance was paid to W. B never knew that G had parted with the title deeds.

It was not until after twelve months that R first heard of the mortgage to B, and that B first heard of the mortgage to R. Express your opinion as to which of the two mortgages is entitled to priority.

5. A executed a mortgage deed of an equitable interest under a will, with a receipt endorsed, signed by A, for the full amount expressed in the deed to have been advanced. A smaller sum only was in fact advanced to him. Shortly after the date of the deed, and before the time had arrived for repayment of the advance, the mortgagee assigned the mortgage to B in consideration of the full amount mentioned in the deed, which B paid to the mortgagee. B made no enquiries of A as to the state of the mortgage debt, nor had he any notice of the sum actually advanced to A. Can A claim redemption on payment of the smaller sum ?

6. A advanced £4,000 to B by way of loan as part of the price already agreed between B and the vendors to be paid for the purchase of a business and factory.

It was agreed between A and B that the money should be applied by B in part payment for the business and factory, and, together with interest and a bonus of 25 per cent., should be secured to A by a policy on B's life in the meantime, and when the purchase had been completed by a mortgage of the factory to A.

B received the money under this agreement, paid it into his banking account, which at the time was in credit to a trifling amount only. He drew a large amount from his account and expended it in discharge of his own liabilities, unconnected with the intended purchase. He became insolvent. Can A recover from the trustee in insolvency the balance of the account?

7. Contracts for the sale of real estate usually contain the following clause :

"If the purchaser should take any objection, or make any requisition as to the title, evidence, or commencement of title, conveyance, or otherwise, which the vendor is unable or unwilling to remove or comply with, the vendor may by notice rescind the contract."

Explain the meaning and effect of this stipulation.

8. Under what circumstances may a trading company, limited by shares and incorporated under the Companies Act 1890, be wound up by the Court?

Upon what principles does the Court exercise its discretion as to making winding-up orders in the case of petitions presented (a) by shareholders, (b) by creditors?

9. In the case and circumstances following, draw the minutes of a judgment for redemption and foreclosure of subsequent incumbrancers and the assignee of the insolvent mortgagor :—

X, Y, and Z..

Plaintiffs.

A, B, C, D, and E. . . Defendants. January, 1886. Two distinct mortgages, firstly, by D and E to the plaintiffs' testator of freeholds of which D and E were jointly seised to secure £100; and, secondly, of E's leaseholds by E to secure £300, the deeds of the freeholds being also deposited as security for the latter.

July, 1886.-Testator of X, Y, Z, having devised mortgaged properties to Y and Z, and appointed them and executors, died. X, Y,

and Z proved his will.

November, 1886.-Second mortgage of whole premises to A, B, and C.

December, 1886.-D becomes insolvent and C is appointed assignee.

THE LAW OF PROPERTY.

Mr. Guest.

1. Why is the Rule against Remoteness of legal contingent remainders limited to cases in which the particular estate is an estate for life?

2. A testator who died in 1870 by his will devised land to trustees and their heirs in trust for A for life, and after his death in trust for such of the children of A who should attain 24 years as

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