W5 - Mortgages II
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One of the situations where undue influence may arise is where there is a relationship of influence of which unfair advantage is taken. There are a number of relationships where there is an irrebuttable presumption that one party has influenced the other. Which ONE of the following is NOT within that number?

  • Doctor and patient
  • Trustee and beneficiary
  • Husband and wife (correct)
  • Solicitor and client
  • In addition to a relationship of trust and confidence, what else must be shown for a claim of undue influence to succeed?

  • A transaction which involves misrepresentation.
  • A transaction which involves fraud.
  • A transaction which requires explanation. (correct)
  • In Barclays Bank v O’Brien, why was the bank unable to enforce its charge against Mrs O’Brien?

  • Mr O’Brien had unduly influenced his wife to sign the charge without ensuring she was fully informed.
  • The bank had unduly influenced Mrs O’Brien into signing the charge without ensuring she was fully informed.
  • The bank had constructive notice of Mr O’Brien’s undue influence and failed to take reasonable steps to ensure that Mrs O’Brien was fully informed. (correct)
  • In RBS v Etridge, the court extended the scope of the principles of constructive notice of undue influence. Which one of the following is the most accurate statements of the effect of this case?

    <p>The principles are relevant in every case where the relationship between the person claiming undue influence and the debtor is non-commercial.</p> Signup and view all the answers

    Which case sets any guidance as to the steps a lender should take to avoid being fixed with constructive notice of undue influence?

    <p>RBS v Etridge</p> Signup and view all the answers

    Where a borrower has created three legal mortgages, in favour of three different lenders, on consecutive days, how do we work out which takes priority?

    <p>Priority between legal charges depends on the order in which they have been registered</p> Signup and view all the answers

    Where a borrower has created three equitable mortgages, in favour of three different lenders, on consecutive days, how do we work out which takes priority?

    <p>Priority between equitable mortgage depends on the order in which they are created.</p> Signup and view all the answers

    An equitable mortgage can be (but does not have to be) protected by entering a s32 Notice on the Charges Register. If an equitable mortgage has been protected, what does that mean in terms of priority?

    <p>It takes priority over ALL subsequent mortgages, whether legal or equitable.</p> Signup and view all the answers

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