Contract Law

Undue Influence This can also be exercised by someone who is not party to the contract. Barclays Bank Plc v O Brien and An other(a) and CIBC Mortgages Plc v Pitt and Another in which the wifes alleged idle bias by their preserves which they directed vitiated their consent to the documents they had sign. O Brien the husband told the wife that the guarantee she signed was limited to £60,000 rather than the £130,000. The H of L upheld the C of A decision that the wifes liability was limited to £60,000, holding that the lodge had been put on head because the transaction was not on its face to the monetary advantage of the wife. In Pitt the wife claimed that the husband had misrepresented to her his intentions in respect of a £150,000 bestow secured with the family radix, the bank was held not to go been put on enquiry because a joint give ostensibly to finance the purchase of a holiday family unit was not apparently to the wifes disadvantage. It wa s held that at that show was an grievous difference between a joint dispose and a surety because the latter was not usually for the improvement of the wife. closely important now is Royal Bank of Scotland v Etridge (No 2) - guinea pig summarises the law in this area, including the steps a lender take to take to defeat a claim of undue influence.

The subject field involved 8 conjoined appeals, 7 of which involved banks onerous to possess family homes upon reliance signed by the wife. In relative to the exercise of influence by third parties, the set up held that there was no demythologised cut off point for kinds of kin covered by the principle o! f notice set come in in OBrien the bank would be presumed to be on enquiry whenever the relationship between the surety and the debtor was non-commercial. The other principles to be applied were, however expressed by the House in terms of the typical husband wife situation, that is: * A bank would normally satisfy the requirement to bring the wifes attention the risks of...If you want to get a wide-cut essay, rove it on our website: OrderCustomPaper.com

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