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Return to JC Smith's The Law of Contract, 3e Student Resources
Chapter 18 Self-test questions
Undue influence
Quiz Content
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What is the origin of undue influence?
Undue influence is an equitable doctrine.
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Undue influence is a common law doctrine.
correct
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Undue influence is a legislative doctrine.
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Undue influence is a doctrine derived from EU law.
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On what basis might it be argued that undue influence is claimant-focussed?
Undue influence is the equitable counterpart of duress.
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Undue influence focusses on the defendant's bad conduct.
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The courts emphasise the defendant's influence on the claimant's decision-making.
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The courts emphasise that the influence is undue.
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Which of the options given is
least
relevant in a relational theory of undue influence?
The relationship between the parties.
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The effect of the relationship on
C
.
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Whether
D
's conduct failed to meet various social norms.
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Whether
D
acted in bad faith.
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incorrect
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For presumed undue influence, what must
C
prove?
That
C
placed trust and confidence in
D
.
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That the transaction calls for an explanation.
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Neither of the options given is correct.
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Both of the options given are correct.
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What type of presumption is raised in the context of presumed undue influence?
A rebuttable presumption, to be rebutted by the influenced party.
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A rebuttable presumption, to be rebutted by the influencer.
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An irrebuttable presumption.
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None of the above options is correct.
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If the relationship between the parties is not one presumed by the law to involve trust and confidence, what is the consequence?
The claim automatically succeeds.
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The claim automatically fails.
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C
must prove that a relationship of trust and confidence did exist.
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D
must prove that a relationship of trust and confidence did not exist.
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Which of the options given was
not
a strand of actual undue influence identified by Rose J in
Libya Investment Authority v Goldman Sachs International
?
Where there has been an improper threat or inducement.
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Where a party occupies an unfair commercial bargaining position.
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Where there is a relationship of trust and confidence between the parties.
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None of the options given were identified by Rose J.
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What is the relationship between actual undue influence and duress?
The two doctrines are completely separate.
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While not identical, there is much overlap between the doctrines.
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The two doctrines are identical in substance; the terminology of actual undue influence and duress is interchangeable.
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The two doctrines are identical in effect; one is the creation of equity, the other comes from the common law.
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How might it be proven that
D
has exploited
C
?
D
deliberately hides particular details from
C
.
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D
fails to draw the attention of
C
to particular details.
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D
has not given the opportunity to
C
to think independently about the transaction.
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All of the options given are correct.
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incorrect
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When might a mortgage over property held jointly by
C
and
D
, in return for a loan over
D
's business, be set aside for undue influence?
If the bank had actual knowledge of the undue influence.
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If the bank had constructive knowledge of the undue influence.
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Neither of the options given is correct.
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Both of the options given are correct.
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incorrect
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According to Lord Nicholls in
Etridge
, in which circumstances would the bank be put on inquiry for the purposes of undue influence?
Where the relationship between the debtor and the surety is noncommercial.
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Only where the relationship between the debtor and the surety is sexual.
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Where the relationship between the debtor and the surety is commercial.
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Under no circumstances.
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Can
C
recover damages from
D
if their claim in undue influence is successful?
Yes.
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No.
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What is the normal remedy for undue influence?
Compensatory damages.
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Restitutionary damages.
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Rescission.
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Specific performance.
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Which legislative protection may be available to claimants who have a claim in undue influence?
Consumer Protection from Unfair Trading Regulations 2008.
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Statute of Frauds 1677.
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Unfair Contract Terms Act 1977.
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None of the above.
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