Undue Influence

Question 1

Allows for parties to set aside contract
2 types — actual and presumed

2 classes ( Barclays Bank v O’Brien)

Answer 1

Class 2a close relationship
Class 2b relationship of trust and confidence

Onus of proof— lies on plaintiff

Question 2

Actual - oflanagan v Ray Ger Ltd

Answer 2

Shareholders in company
A terminally ill—- b had more dominant personality
Brought a
a to the pub and proposed agreement — for both their shares to be passed on to surviving partner — upon their death

— obviously in A’s interest

Transaction set aside

Question 3

Class 2 - presumed

Answer 3

Trust and confidence :
Solicitor and client
Parent and child
Priest and disciple

White v Meade

P— joined religious group— transferee large amount of her personal wealth— to the org

Created presumption that transaction influenced by improper pressure

Question 4

Class 2b manifest disadvantage

Relationship — of trust and confidence

Answer 4

Character of relationship is critical

Gregg v Kidd

Plaintiff— very ill- dependent on sister
Sister ( forceful and determined character)

Nature of relationship — transferred his land to his sisters family

Transaction was tainted with undue influence

Question 5

Manifest disadvantage

Cheese v Thomas

Answer 5

Elderly man— paid his life savings — to nephew

For right to live in his house — which he had sold to nephew

Question 6

Unconscionable bargain

Dominant party takes advantage of another weaker Party in a transaction

Answer 6

Boustaney v pig got

4 elements

Bargaining impairment
Exploitation
Transaction manifesting improvident — to weaker party

— weaker party lacked adequate advice

Question 7

Grealish v Murphy

Answer 7

— advice given by solicitor — insufficient
— solicitor — not aware of clients mental deficiencies

Question 8

Prendergast v Joyce

Answer 8

Taking Advantage
Transaction @ undervalue
Lack of independent advice