Chapter 18 End of Chapter Questions

. What must C prove for a claim in actual undue influence?

That a relationship of undue influence existed at the time of his entering into contract

Primary facts that lead to a rebuttable presumption of the facts necessary to ground an undue influence claim

An inequality of bargaining power between C and the other party to the contract, with a resulting contract that is in favour of the latter.

None of the options given is correct.

. For what reason was Miss Allcard not able to recover her property in Allcard v Skinner?

There was no unconscionable conduct on the part of the defendant

The claimant had given sufficient consent

There was a delay in bringing the claim

She had received independent advice

. A is the President of her College Ball Committee. A books a number of performers for the ball from one agent, B. After further discussions with the ball committee, A decides to book another performer through another agent. B discovers this and tells A that he will inform A's committee of the discount B provided to A, that A decided to keep for herself, if A does not book all subsequent acts through B. What claim may A have against B if B wishes to enforce the contract?

Presumed undue influence

Actual undue influence

Presumed undue influence or duress

Actual undue influence or duress

. Which of the following is not automatically a relationship of trust and confidence?

Parent and child

Husband and wife

Solicitor and client

Trustee and beneficiary

. What must a defendant prove to rebut a claim of presumed undue influence?

A reasonable explanation for the transactions exists

On the balance of probabilities, the claimant entered the transaction of her own free will

That the claimant had independent legal advice

All of the answers given are correct

. When would a bank not be put 'on inquiry' for undue influence?

Where a loan is advanced to a husband and wife jointly

Where the wife secures her husband's company's debts and the wife has a shareholding in the company

Where the wife secures her husband's company's debts and the wife is an officer of the company

All of the options given are correct

. Mr Allan wishes to obtain a loan for his company from Big Bucks Bank, for which he asks Mrs Allan to be a surety. Big Bucks Bank, realising that it is put on notice of potential undue influence, instructs a solicitor to explain the implications of the transaction to Mrs Allan. Big Bucks Bank later discovers that the solicitor also acts for Mr Allan. What steps should Big Bucks Bank take?

Instruct a new solicitor to inform Mrs Allan of the transaction

Cancel any loan being made to Mr Allan

Ask Mr Allan to find a new surety

Ask for written confirmation from the solicitor that the transaction has been independently explained to Mrs Allan

. A becomes a surety for her a loan for her husband's company, in which A holds shares. A does not receive legal advice from a solicitor. A's husband defaults on the loan, A stands to lose £6000 as a result. A claims that she entered into the transaction under undue influence. If the claim is successful, what remedy might A be entitled to?

Rescission only

Damages to reflect the administration charges of entering into the transaction.

Rescission and damages to reflect the administration charges of entering into the transaction

Rescission, damages to reflect the administration charges of entering into the transaction, and damages to reflect the lost opportunity of using money elsewhere.

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