Lloyds Bank v Bundy
1975 · QB 326
Posted By lanbuk.com
- Facts
- An elderly farmer, who relied on his bank, charged his home to support his son's company. The bank did not ensure he had independent advice.
- Issue
- Could the charge be set aside for ?
- Held
- Yes. The relationship and the transaction called for explanation, and the bank had not seen that the farmer was free of the influence.
- Principle
- A bank that takes a guarantee in circumstances of can lose it if the guarantor had no independent advice.
- Why it matters
- It is the main modern undue influence case.
Words and Latin in this note
- Undue influence
- Pressure that takes away a free choice, usually where one person trusts another and the transaction calls for an explanation. The transaction can be set aside. Open the note.
- Trust
- An arrangement in which a trustee holds property at law but must use it for beneficiaries, or for a charitable purpose. The beneficiaries have the equitable interest. Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.