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Bank held liable for failure to enquire into customer’s mental capacity.

By: Mark Tottenham BL

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Court holds presumption of undue influence not rebutted, as defendants did not give evidence, and transaction set aside. Bank held jointly and severally liable to the plaintiff on the grounds that manager did not make sufficient enquiries as to plaintiff's capacity.

Improvident transaction - 77-year-old woman - gift made at bank premises - advice to consult lawyer - presumption of undue influence - whether presumption rebutted - whether bank had duty to plaintiff not to pay out moneys - whether bank on notice of plaintiff's incapacity - whether bank obliged to act on instructions Ward v. McMaster

Note: This is intended to be a fair and accurate report of a decision made public by a court of law. Any errors should be notified to the editor and will be dealt with accordingly.

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