Wise v The Perpetual Trustee Company Limited (Executors of WH Paling (Deceased): PC 13 Dec 1902

(New South Wales) A trust instrument may exclude by implication any right of the trustee to claim an indemnity against the beneficiaries personally.
Lord Lindley said: ‘Clubs are associations of a peculiar nature. They are societies the members of which are perpetually changing. They are not partnerships; they are not associations for gain; and the feature which distinguishes them from other societies is that no member as such becomes liable to pay to the funds of the society or to any one else any money beyond the subscriptions required by the rules of the club to be paid so long as he remains a member. It is upon this fundamental condition, not usually expressed but understood by every one, that clubs are formed, and this distinguishing feature has been often judicially recognised. It has been so recognised in actions by creditors and in winding-up proceedings.’
Unless a member of an unincorporated association has agreed otherwise, the member will not be liable under contract purportedly entered into on their behalf.

Lord Lindley
[1902] UKPC 59, [1903] AC 139
Bailii
Commonwealth

Commonwealth, Trusts, Company

Leading Case

Updated: 31 October 2021; Ref: scu.419485