Research On The Right Of Revocation Of The Trust Settlor

Tracing in equity is a relief measure developed by the equity courts in the absence of common law.In the case where the trustee violates the trust,the beneficiary can not only track the trust property and various transformation forms under the control of the trustee,but also recover the trust property or substitute property interests from the trust property transferee.The Japan Trust Act of 1922 reconstructed tracing in equity into the trust cancellation right and the right of claim for damage compensation.The Trust Law of the People's Republic of China stipulates that if the trustee disposes of the trust property against the purposes of the trust or causes losses to the trust property due to violation of the management duties or improper handling of the trust affairs,both the trustor and the beneficiary have the right to apply to the people's court for withdrawing the disposition;they also have the right to ask the trustee to revert the trust property or make compensation.In other words,the trust cancellation right includes the trustor's cancellation right and the beneficiary's cancellation right.Entitling the trustor the cancellation right is based on the social reality when China drafted the trust law.Many scholars have questioned the theoretical basis of the trustor's cancellation right.However,the nature of the beneficiary's cancellation right is also controversial in theory,and it is difficult to incorporate the beneficiary's cancellation right into the theoretical system of civil law.The reason is that the traditional mainstream view of the trust property is limited to the object of rights.The theoretical logic starting point of the ownership of the trust property to the trustee or beneficiary is to discuss the rights and obligations of the parties to the trust.The trust relationship has both contract attributes,real rights attributes and organizational attributes.The legal subject of the trust nature can better explain the nature of the trust.Based on this theory,the essence of the trust cancellation right is the right of the trust to deny the trustee's ultra vires act.The Trust Law of the People's Republic of China takes both the protection of the purpose of the trust and the interests of the beneficiaries into account.The trustor enjoys the benefits realized by the trust for the purpose of the trust.Therefore,within the trust organization,when the trustee manages trust affairs contrary to the purpose of the trust,the trustor has the right to revoke that civil juristic act.However,the trustor's cancellation right should be properly restricted to balance the rights and obligations of the trust parties in the trust relationship,and balance the interests of the trust parties with the interests of the trustee of the trust property.At the same time,Article 22 of The Trust Law of the People's Republic of China miscellaneously stipulates the right of the trust cancellation right and the right to claim for damage compensation.The reasons for exercising different rights should be distinguished,and the reason for the trustor's cancellation right should be limited to "the trustee's civil juristic act violates the trust purpose ".When the trustor and the beneficiary have different opinions,the people's court shall make a judgment based on the principle of priority of trust purpose.