Fry v Lane (1888) 40 Ch D 312

Chancery Division

Basic Facts: C were brothers with low-paying jobs who sold their revisionary interests in their uncle's estate to D for £170 and £270, respectively. The estate was worth £730 when the aunt died. The brothers, advised by an inexperienced solicitor acting for D, sought to set aside the transaction.

Issue for the Court: When will the court set aside a transaction for unconscionable exploitation of a weakness?

Held : The court held that transactions involving exploitation of a party’s weakness, particularly when sold at an undervalue and without independent legal advice, can be set aside.

• Kay J found that the brothers' financial vulnerability and lack of independent advice warranted setting aside the transaction. The purchase at a considerable undervalue from financially distressed sellers justified equitable intervention.

💡Leveluplaw : This case reinforced the principle that transactions can be invalidated if they exploit a party’s weakness and lack of independent advice, emphasizing fairness in property dealings.