Barclays Bank plc v O'Brien
E728344
Barclays Bank plc v O'Brien is a leading 1993 House of Lords decision in English law that established key principles on undue influence and a bank’s duty of inquiry when taking security over a family home.
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
English contract law case
ⓘ
English undue influence case ⓘ House of Lords decision ⓘ leading case ⓘ |
| appliedIn | Royal Bank of Scotland plc v Etridge (No 2) NERFINISHED ⓘ |
| areaOfLaw |
banking law
ⓘ
equity ⓘ security over matrimonial home ⓘ undue influence ⓘ |
| citation |
[1993] 3 WLR 786
ⓘ
[1993] 4 All ER 417 ⓘ [1994] 1 AC 180 ⓘ |
| clarifies |
scope of a bank’s responsibility for misrepresentation by a debtor spouse
ⓘ
when a bank is fixed with constructive notice of undue influence ⓘ |
| concerns |
security over a family home
ⓘ
spousal guarantees ⓘ |
| country | United Kingdom ⓘ |
| court | House of Lords NERFINISHED ⓘ |
| decisionType | appeal decision ⓘ |
| defendant |
Mr O'Brien
NERFINISHED
ⓘ
Mrs O'Brien NERFINISHED ⓘ |
| establishes |
bank’s duty of inquiry in non-commercial relationships
ⓘ
constructive notice test for banks in undue influence cases ⓘ requirement for banks to take reasonable steps to ensure informed consent ⓘ requirement to advise independent legal advice in certain circumstances ⓘ |
| holds |
principles on actual undue influence
ⓘ
principles on presumed undue influence ⓘ |
| influenced | Royal Bank of Scotland plc v Etridge (No 2) NERFINISHED ⓘ |
| judge |
Lord Browne-Wilkinson
NERFINISHED
ⓘ
Lord Griffiths NERFINISHED ⓘ Lord Lowry NERFINISHED ⓘ Lord Templeman NERFINISHED ⓘ Lord Woolf NERFINISHED ⓘ |
| jurisdiction | England and Wales ⓘ |
| keyword |
bank’s duty of inquiry
ⓘ
constructive notice ⓘ matrimonial home ⓘ spousal guarantee ⓘ undue influence ⓘ |
| leadingJudge | Lord Browne-Wilkinson NERFINISHED ⓘ |
| legalPrinciple |
a bank is put on inquiry where a wife guarantees her husband’s debts and the transaction is not to her financial advantage
ⓘ
constructive notice arises where a bank fails to make proper inquiry in suspicious circumstances ⓘ failure to take reasonable steps to ensure informed consent may render security unenforceable ⓘ |
| legalSystem | common law ⓘ |
| plaintiff | Barclays Bank plc NERFINISHED ⓘ |
| result | security set aside as against the wife ⓘ |
| subjectMatter |
enforcement of a charge over the matrimonial home
ⓘ
wife’s guarantee of husband’s business debts ⓘ |
| yearDecided | 1993 ⓘ |
Referenced by (1)
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