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undue influence - Coggle Diagram
undue influence
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•It takes the form of improper pressure short of duress on a person resulting in their being at a manifest disadvantage in relation to some transaction
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barclays bank v obrien
**In essence, the decision in this case established that banks and other lenders have a duty to ensure that spouses providing security for their partner's debts fully understand the nature and implications of the transaction. If this duty isn't met, the transaction can be set aside, providing protection to the spouse who may have been vulnerable or unaware of the risks involved.
o Due to the nature of the relationship, the bank had a duty to take reasonable steps to ensure that married women understood the nature and effect of the transaction and that the consent given was true and informed
oThe bank had failed in this duty and the charge was not enforceable beyond £60,000
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Bank of Credit and Commerce International SA v Aboody [1990] 1 QB 923 Slade LJ set out the requirements to establish actual influence:
the buden of proof is on the claiamtn to show that
the aprty in question has the capacity to influence him or her
the influence was e xervcised
the exercise of the ingluence was undue
the influence caused him or her to enter into the trasnsaction
so, undue influence is where, one aprty usses improper pressure, short of udress, on a person, resulting in them being at a manifest disadvtnage in relation to some transcation