Rescission Part 2

Question 1

Northern Bank Finance Corp Ltd v Charlton [1979] IR 149

Answer 1

Misrepresentation: Bank lends money on a misrepresentation, defaulted on loan, bank sued

Court granted rescission as the defendants had been induced by a fraudulent misrepresentation to enter into the transactions

Appealed to the SC, and SC agreed with Charlton

However, SC disagreed with granting recission, as it was impossible to return the parties to their original position

Question 2

Carroll v Carroll [1999] 4 IR 241 (SC)

Question 3

Bank of Nova Scotia v Hogan [1996] 3 IR 239

Answer 3

Banks only put on inquiry where there was a non-commercial relationship between borrower and surety, and no need for bank to have a separate meeting with the wife if wife got independent legal advice. However, it was for bank to satisfy itself that this requirement had been met.