Even in the absence of agency, if the debtor has been guilty of undue influence or misrepresentation in securing the giving of security by a third party to cover his debt to the creditor, the creditor may not be able to enforce the surety contract if the creditor had notice, actual or constructive, of the debtor’s conduct.
Citations:
[1986] 1 All ER 429, CA, [1986] 2 WLR 466, [1986] QB 1184
Jurisdiction:
England and Wales
Cited by:
Cited – Barclays Bank Plc v O’Brien and Another HL 21-Oct-1993
The wife joined in a charge on the family home to secure her husband’s business borrowings. The husband was found to have misrepresented to her the effect of the deed, and the bank had been aware that she might be reluctant to sign the deed.
Lists of cited by and citing cases may be incomplete.
Undue influence
Updated: 10 June 2022; Ref: scu.180574