Notesale: Turn your study into money

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Contract – Undue influence
An agreement may be avoided where it was entered in to as a result of unfair influence due to the
parties’ relationships
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Where undue influence is established between parties, the victim can have the transaction set aside
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There are 2 types – actual and presumed
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Presumed undue influence 2a
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This leads to the presumption of influence in the law
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The burden then falls on the wrongdoer to prove that there was not any undue
influence exercised i
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it could be shown that the transaction was entered in to freely
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Claimant is able to establish the existence of a relationship of trust and confidence on the facts
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Lloyds Bank Ltd v Bundy 1975
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Bank customer placed trust and confidence in bank manager for financial advice
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Goodchild v Bradbury 2006:
FACTS: There was a gift of land by an elderly man who was in hospital after suffering a stroke to his
grand-nephew who sold the land to a property developer for only 1800
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Hammond v Osborn 2002
FACTS: An elderly donor had made a number of large gifts (nearly 300 000) to the D, his neighbour,
who had ee taki g a e of hi
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HELD: A relationship of trust and confidence existed between to man and the carer and there was
clearly something suspicious about the gifts
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