A breach of trust does not always end in liability; equity and statute give the trustee several lines of defence, each with its own limits. This chapter begins with exemption clauses in the trust instrument — how far they can stretch to cover negligence, where fraud and dishonesty draw the line, and how ambiguous wording is construed. It then examines consent and acquiescence by beneficiaries, including the knowledge required and the court's power to impound a consenting beneficiary's interest, before turning to the limitation rules, the situations where no time limit applies, and the equitable doctrine of laches. It closes with s 61 of the Trustee Act 1925, under which a trustee who acted honestly and reasonably may be relieved of liability in whole or in part.
