In English law, undue influence occurs when a party enters into a contract or transaction due to pressure or manipulation, undermining their free will and genuine consent.
Undue influence involves exploiting a position of trust, authority, or power to unfairly persuade another party into contractual arrangements. The resulting agreements can be voidable by the influenced party.
Contracts formed under undue influence can be rescinded, restoring parties to their pre-contractual positions.
Recognising undue influence protects individuals from exploitation, ensuring contractual agreements reflect genuine, voluntary consent.
September 4, 2025
Mrs Waller-Edwards remortgaged her home jointly with her partner, partly to discharge his personal debts. She later claimed undue influence. The Supreme Court held that banks are put on inquiry whenever any non-trivial portion of a non-commercial loan serves to discharge one party's debts, requiring independent legal advice. Facts Catherine...
August 31, 2025
Eight appeals concerning wives who charged their homes as security for husbands' debts and later claimed undue influence. The House of Lords clarified when banks are 'put on inquiry' and what steps they must take to avoid constructive notice of undue influence, establishing comprehensive guidance on solicitors' duties and disclosure...
August 31, 2025
Mrs Morgan signed a legal charge over the family home to secure a bridging loan from the bank to pay off a building society mortgage. She claimed the charge was procured by undue influence. The House of Lords held that no undue influence existed as the transaction was not manifestly...
August 29, 2025
An elderly farmer charged his only asset, Yew Tree Farm, to secure his son's company debts after the bank manager visited without suggesting independent advice. The Court of Appeal set aside the guarantee and charge on grounds of undue influence, establishing that banks owe fiduciary duties when crossing from routine...
August 28, 2025
A junior employee was persuaded by her employer to mortgage her flat as unlimited security for the company's overdraft of up to £270,000. The Court of Appeal set aside the mortgage, finding the bank had constructive notice of the employer's undue influence over the employee and the transaction was manifestly...
August 28, 2025
Mrs Pitt was induced by her husband's actual undue influence to charge their jointly-owned home to secure a loan ostensibly for a holiday home, but actually used by Mr Pitt for share speculation. The House of Lords held that manifest disadvantage need not be proved in cases of actual undue...
August 28, 2025
Facts Mr. and Mrs. O’Brien were joint owners of their matrimonial home. Mr. O’Brien’s company, in which Mrs. O’Brien had no interest, required an increased overdraft facility from Barclays Bank. The bank agreed, on the condition that it was secured by a second charge over the O’Briens’ home. Mr. O’Brien...
August 28, 2025
Facts In 1868, the claimant, Miss Allcard, a woman of approximately 35 years, was introduced to the defendant, Miss Skinner, who was the lady superior of a Protestant institution known as the ‘Sisterhood of St. Mary at the Cross’. The sisterhood was a voluntary association of women dedicated to charitable...
March 9, 2026
National Case Law Archive
March 9, 2026
National Case Law Archive
March 9, 2026
National Case Law Archive