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5 Cards in this Set
- Front
- Back
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Undue influence...
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Undue influence makes a contract voidable, remedy is rescission with same bars as duress.
Influence beyond what is acceptable - Seek out unequal relationships - Did the transaction involve dominant party abusing relationship? UI will be presumed in some cases, not always proved on the facts. - Where there is a fiduciary relationship |
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Rule for presumed undue influence
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Has to be:
- Relationship of trust and confidence - Transaction must be one that calls for an explanation - Nothing to rebut the presumption |
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Some relationships always entail trust and confidence
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- Solicitor/client
- Doctor/patient - Parent/child under 18 - Religious advisers/followers - NOT husband and wife |
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Relationship must call for an explanation
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The transaction must also call for an explanation (RBS v Etridge), ie not be readily explicable by the relationship
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Constructive Notice
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when the party ought to have been “put on inquiry” of the risk of undue influence by the debtor and did not take reasonable steps to ensure that surety knew what they were signing. (RBS v Etridge)
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