Barclay’s Bank v O’Brien [1994] 1 AC 180

Written By Nicolas Heyes

Court: House of Lords

Basic Facts : Mr. O’Brien persuaded his wife to sign a mortgage document without fully understanding its implications, leading to financial distress when the mortgage was enforced.

Issue: When can a mortgage be set aside due to undue influence?

Held: The House of Lords ruled that undue influence in securing a mortgage could render the transaction voidable if the mortgagee had actual or constructive notice of the undue influence.

  • (Lord Browne-Wilkinson):

    • Constructive Notice: If a creditor fails to ensure that a surety (like a spouse) understands the risk, the mortgage may be set aside.

Nicolas Heyes
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