Contract - Undue Influence

Question 1

What grounds can a mortgage be set aside for undue influence

Answer 1

A bank will be put on inquiry where the relationship between the client and debtor is non-commercial and the loan is not for their joint benefit.

The Bank can overcome this by having a private meeting with the client to explain the risks and requiring them to take independent advice.

If they fail to do this the bank ell have constructive notice of the undue influence which may make the mortgage void.