LAWS 2202 Lecture Notes - Lecture 12: Bargaining Power, Unconscionability, Undue Influence
22 Apr 2016
School
Department
Course
Professor
Document Summary
Lloyd"s bank v bundy 1974 ukca 1: facts father signs a guarantee of son"s corporate indebtedness without independent legal advice. He then loses his farm to the bank. Bundy owned a house which was the extent of his estate. His son operated a business that did not do very well and asked his father to give him collateral for taking out loans. The father signed the collateral for a small amount of money after considering it overnight and talking to his lawyer. Later on, the son and lawyers came over to explain that they need more collateral (the house) in which case bundy signed. The bank later on seized all the sons assets and are sueing to have bundy evicted from the house. Undue influence when the stronger party is guilty of fraud to gain the advantage of the weaker; or the stronger has taken advantage of their relationship of the weaker to gain an advantage for himself.
