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Undue influence – court rejects new category of "hybrid" transactions
Those who lend to and take third party security and/or guarantees from individuals will be interested in the recent case of One Savings Bank plc v Waller-Edwards.
In this case, the Court of Appeal considered whether there should be a new category of "hybrid" transaction involving joint borrowers that puts a lender on inquiry of the risk of undue influence being exerted on one of the borrowers by the other.
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