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Cheese v Thomas [1994] 1 All ER 35

By Oxbridge Law TeamUpdated 04/01/2024 07:00

Judgement for the case Cheese v Thomas

Table Of Contents

  • Plaintiff agreed to contribute £40k towards his nephew, Defendant, buying a house that Plaintiff would be allowed to live in for life.

  • Later learning that Defendant had missed several payments, Plaintiff sued to void the agreement and regain his money due to undue influence.

  • CA set aside the transaction between them and ordered the sale of the house, with the two getting the proceeds in the proportions to which they had contributed.

    • The arrangement was manifestly disadvantageous to Plaintiff (it only gave him a right to inhabit, took all his capital and he would lose this right if the house were repossessed).

    • Defendant had conceded that the presumptive undue influence therefore applied here.

  • Apportioning the loss in this way (sale of the house with proceeds based on contributions) ensured practical justice was done. 

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