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The Mortgage and Bankruptcy of a University Student Name

   

Added on  2021-06-17

11 Pages851 Words267 Views
CORPORATE LAWName of the StudentName of the UniversityAuthor NoteName of the StudentName of the UniversityAuthor Note

Issues and Facts:The appellant, Mrs. Garcia and her former husband mortgaged their home and executed it in favor of National Australia Bank Ltd;The appellant signed a guarantee in favor of the Bank securing the debts of the company of her former husband;The parties dissolved their marriage and there was a failure in the business of her husband ;Bank demanded guarantees on the failure of the business, the appellant claimed equitable relief against the contract;Issues and Facts:The appellant, Mrs. Garcia and her former husband mortgaged their home and executed it in favor of National Australia Bank Ltd;The appellant signed a guarantee in favor of the Bank securing the debts of the company of her former husband;The parties dissolved their marriage and there was a failure in the business of her husband ;Bank demanded guarantees on the failure of the business, the appellant claimed equitable relief against the contract;National Australia Bank ltd v Garcia (1998) 194 CLR 395National Australia Bank ltd v Garcia (1998) 194 CLR 395

The trial court ruled that the documents were signed by the appellant under undue influence caused by her former husband;The Court of Appeal disagreed with the trial court and overturned the landmark precedent on equity law in Australia given in Yerkley v Jones ;The High Court rejected the Court of Appeal, upheld the decision in Yerkley;The High Court held the appellant has a right to special equity;The trial court ruled that the documents were signed by the appellant under undue influence caused by her former husband;The Court of Appeal disagreed with the trial court and overturned the landmark precedent on equity law in Australia given in Yerkley v Jones ;The High Court rejected the Court of Appeal, upheld the decision in Yerkley;The High Court held the appellant has a right to special equity;

the concept of special equity, it was incorporated within the equitable jurisdiction as a means of precautionary measures that safeguarded wives from the equitable fraud that may be caused by their husbands or any third party creditor;equitable fraud and special equity includes the concepts of unconscionable conduct and undue influence;Actual undue influence requires the aggrieved party to establish that he or she was part of a transaction without exercising his or her free will. Undue influence is presumed when it is established that the parties are in a antecedent relationship where it is presumed that undue influence has been exerted by one party upon the other partythe concept of special equity, it was incorporated within the equitable jurisdiction as a means of precautionary measures that safeguarded wives from the equitable fraud that may be caused by their husbands or any third party creditor;equitable fraud and special equity includes the concepts of unconscionable conduct and undue influence;Actual undue influence requires the aggrieved party to establish that he or she was part of a transaction without exercising his or her free will. Undue influence is presumed when it is established that the parties are in a antecedent relationship where it is presumed that undue influence has been exerted by one party upon the other partyRELEVANT LAWS AND PRINCIPLESRELEVANT LAWS AND PRINCIPLES

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