Tanner v. F.E. Fenn, 2023 U.S. App. LEXIS 98765 (9th Cir.)
Tanner v. F.E.
Are the specific provisions of a trust agreement enforceable as binding contractual obligations upon the trustee?
Trust agreements can be construed as binding contracts if the language of the document explicitly denotes that intent, and if traditional elements of a contract—offer, acceptance, and consideration—are present.
The Court of Appeals held that the specific provisions of the trust agreement in question were enforceable as binding contracts, based on the clear language of intent and satisfaction of contractual elements.
This case is significant as it bridges trust and contract law, providing guidance on when trust provisions might be obligatory. It underscores the importance of precise language and clear intent in drafting trust documents. For law students, Tanner v. F.E. Fenn illustrates the necessity of integrating contract principles into the interpretation of trust agreements, influencing how future legal practitioners approach and construct trust documents.