Chapter 18 Self-test questions

. What is the origin of undue influence?

Undue influence is an equitable doctrine.

Undue influence is a common law doctrine.

Undue influence is a legislative doctrine.

Undue influence is a doctrine derived from EU law.

. On what basis might it be argued that undue influence is claimant-focussed?

Undue influence is the equitable counterpart of duress.

Undue influence focusses on the defendant's bad conduct.

The courts emphasise the defendant's influence on the claimant's decision-making.

The courts emphasise that the influence is undue.

. Which of the options given is least relevant in a relational theory of undue influence?

The relationship between the parties.

The effect of the relationship on C.

Whether D's conduct failed to meet various social norms.

Whether D acted in bad faith.

. For presumed undue influence, what must C prove?

That C placed trust and confidence in D.

That the transaction calls for an explanation.

Neither of the options given is correct.

Both of the options given are correct.

. What type of presumption is raised in the context of presumed undue influence?

A rebuttable presumption, to be rebutted by the influenced party.

A rebuttable presumption, to be rebutted by the influencer.

An irrebuttable presumption.

None of the above options is correct.

. 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.

The claim automatically fails.

C must prove that a relationship of trust and confidence did exist.

D must prove that a relationship of trust and confidence did not exist.

. 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.

Where a party occupies an unfair commercial bargaining position.

Where there is a relationship of trust and confidence between the parties.

None of the options given were identified by Rose J.

. What is the relationship between actual undue influence and duress?

The two doctrines are completely separate.

While not identical, there is much overlap between the doctrines.

The two doctrines are identical in substance; the terminology of actual undue influence and duress is interchangeable.

The two doctrines are identical in effect; one is the creation of equity, the other comes from the common law.

. How might it be proven that D has exploited C?

D deliberately hides particular details from C.

D fails to draw the attention of C to particular details.

D has not given the opportunity to C to think independently about the transaction.

All of the options given are correct.

. 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.

If the bank had constructive knowledge of the undue influence.

Neither of the options given is correct.

Both of the options given are correct.

. 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.

Only where the relationship between the debtor and the surety is sexual.

Where the relationship between the debtor and the surety is commercial.

Under no circumstances.

. Can C recover damages from D if their claim in undue influence is successful?

Yes.

No.

. What is the normal remedy for undue influence?

Compensatory damages.

Restitutionary damages.

Rescission.

Specific performance.

. Which legislative protection may be available to claimants who have a claim in undue influence?

Consumer Protection from Unfair Trading Regulations 2008.

Statute of Frauds 1677.

Unfair Contract Terms Act 1977.

None of the above.

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