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10 Cards in this Set
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what is it |
Improper pressure that does not amount to duress but leadsparty into contractCourt will intervene if one party has exploited theirrelationship with the other, exerted improper pressure etc… About procedural fairness Looking at the nature of the bargain |
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“In everyday life people constantly seekto…persuade those with whom they are dealing to enter into transactions whethergreat or small. The law has to set limits to the means properly employable forthis purpose…If the intention was produced by unacceptable means, the law willnot permit the transaction to stand.” Per Lord Nicholls |
RoyalBank of Scotland Plc v Etridge (No.2)<㰓c |
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Categoriesof Undue Influence |
Actual Undue Influence: Pressure exerted Presumed Undue Influence: No actual pressure but there is something dodgy about the whole set. Due to actual pressureSame sex relationships do not fall in class 2 A They fall in 2 B: court regards relationship as equal unless proven otherwise |
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facts etridge |
All to do with partnership relations - Involves the shared home - One party wants to get money from the house, get agreement from the bank to raise money on the house - Husband gets the agreement and it’s the wife who is the person who needs to sign as the second signature - Bank attempts to repossess the house due to financial difficulty - Wife argues undue influence - Nature of the influence: was the wife unduly influenced? - (Court at this time rejected that there would be the same balance of power in the same-sex relationship) - Lord Nichols: He said we should do away with the classes and the categories and instead require parties to prove the relationship and as a result they entered into the contract - There will still be a category called actual undue influence. Prove that influence actually occurred - Burden of proof will be easier he said if you have the categories:0cm'I |
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Actual undue influence Royal Bank of Scotland Plc v Etridge (No.2), [2001] 3 WLR 1021(HL) BCCI v Aboody [1992] 4 ALL ER 955 |
Wife enters into a contract tomortgage the house for her husband’s business after very distressing outburstby her husband.She had to sign the contract in thepresence of a bank representativeNo duress no threat - his behaviouris very intimidating Prove 4 things The other party to transaction had the capacity to influence the complainant Influence must be exercise They did exercise influence unduly The exercise of the influence induced the transactionKEY: Don’t need to go on and prove that the transaction isdisadvantageous to the complainant (old law)H���i�� |
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Presumed undue influence A relationship of trust and confidence Allcardv Skinner |
“a case well known to every lawstudent”! per Lord Nicholls Relationship as well mother superior and the rest of the nuns |
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Relationship between a neighbour and his relationship between elderly neighbour He promises to leave his house to the defendant in his will and in the meantime the defendant can live with him The court says: This is a relationship of trust and confidence Transaction: whether it calls for an explanation|Bƻ |
Goldsworthv Brickell |
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The transaction must call for an explanation Manifest disadvantageous transaction? Undue influence straddles the line past just proceduralExplanation, delving into the nature of the bargain |
NatwestBank v MorganNo",ǻ |
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Rebutting the presumption A failed to rebut the presumptionraised by Vale’s transfer of property to his great-nephew in exchange for the nephew’spromise to pay the mortgage and maintenance on the property.д#ǻ |
Valev Armstrong b |
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Remediesif undue influence provedgd- |
Contract voidable not void.a. rescission which may be lost ifbars to rescission presentb. refusal to enforce the agreementodȴ;ǻ |
