EQUITY AND TRUSTS EXAM PREPARATION QUESTIONS AND
ANSWERS (VERIFIED AND WELL DETAILED ANSWERS)
LATEST UPDATE 2025/2026
Undue Influence
Dominant party must not, in bringing about a transaction, take advantage of his or
her influence over another for personal benefit.
Actual Undue Influence
Express use of influence which brought about the transaction so that plaintiff's
actions are not free and voluntary - must prove both existence of actual influence
and improper use of influence.
Presumed Undue Influence
Presumes the transaction came about as a result of the undue influence.
Union Bank of Australia v Whitelaw
A case illustrating the principles of undue influence.
Johnson v Buttress
A case that establishes the relationship of influence and the burden of proof in
undue influence claims.
Lloyd's Bank v Bundy
A case that discusses the factors of reliance and influence in the context of undue
influence.
Hart v Burbidge
A case that clarifies that undue influence targets impairment of judgment of the
weaker party, not improper conduct on the part of the stronger party.
Zamet v Hyman
A case that states the onus is on the defendant to show the transaction was entered
after 'full free and informed thought'.
Allard v Skinner
,A case that discusses the burden of proof resting on a party seeking to avoid a
transaction for actual undue influence.
Parent and Child Relationship
A presumed relationship of influence until the contrary is shown, where the parent
dominates the child.
Bank of New South Wales v Rogers
A case involving a relationship of influence where a party resided with their uncle
due to their father's death.
Factors of Undue Influence
Reliance on guidance or advice; awareness of reliance; benefit received; element of
confidentiality.
Breach of Undue Influence
Did the stronger party take advantage of the special relationship?
Defences to Undue Influence
Righteousness of the transaction; improvidence of the deed; independent advice;
adequacy of consideration.
Remedies for Undue Influence
See below (same as for UB).
Third Party Liability
Are any third parties involved on the facts?
Establishing a Relationship of Influence
May be actual or presumed.
Burden of Proof in Actual Undue Influence
Rest on the party seeking to avoid the transaction.
Elements of Actual Undue Influence
D had capacity to influence P; influence was exercised; exercise was undue (to
obtain benefit of P or third party).
, Presumptive Relationships of Influence
Presumed relationship of influence until the contrary is shown.
Impairment of Judgment
Undue influence targets impairment of judgment of the weaker party.
Independent Advice
Advice received by the weaker party to counteract undue influence.
Coercion
Unfair or improper conduct that may indicate actual undue influence.
Confidential Relationship
A relationship where one party relies on the other for guidance or support.
Equitable Obligation
The duty established in cases of undue influence to ensure fair dealings.
Special Relationship of Influence
A relationship where one party has significant influence over another, such as
parent/child or solicitor/client.
Gift Transfer Challenge
A situation where a transfer of property is contested due to claims of undue
influence.
Antecedent Relationship
A prior relationship that may cast doubt on the fairness of a transaction.
Presumption of Undue Influence
Assumption that influence led to unfair advantage.
Hogg v Hogg
Case establishing parental influence over children.
Guardian and Ward
Legal relationship where guardian has authority over ward.
ANSWERS (VERIFIED AND WELL DETAILED ANSWERS)
LATEST UPDATE 2025/2026
Undue Influence
Dominant party must not, in bringing about a transaction, take advantage of his or
her influence over another for personal benefit.
Actual Undue Influence
Express use of influence which brought about the transaction so that plaintiff's
actions are not free and voluntary - must prove both existence of actual influence
and improper use of influence.
Presumed Undue Influence
Presumes the transaction came about as a result of the undue influence.
Union Bank of Australia v Whitelaw
A case illustrating the principles of undue influence.
Johnson v Buttress
A case that establishes the relationship of influence and the burden of proof in
undue influence claims.
Lloyd's Bank v Bundy
A case that discusses the factors of reliance and influence in the context of undue
influence.
Hart v Burbidge
A case that clarifies that undue influence targets impairment of judgment of the
weaker party, not improper conduct on the part of the stronger party.
Zamet v Hyman
A case that states the onus is on the defendant to show the transaction was entered
after 'full free and informed thought'.
Allard v Skinner
,A case that discusses the burden of proof resting on a party seeking to avoid a
transaction for actual undue influence.
Parent and Child Relationship
A presumed relationship of influence until the contrary is shown, where the parent
dominates the child.
Bank of New South Wales v Rogers
A case involving a relationship of influence where a party resided with their uncle
due to their father's death.
Factors of Undue Influence
Reliance on guidance or advice; awareness of reliance; benefit received; element of
confidentiality.
Breach of Undue Influence
Did the stronger party take advantage of the special relationship?
Defences to Undue Influence
Righteousness of the transaction; improvidence of the deed; independent advice;
adequacy of consideration.
Remedies for Undue Influence
See below (same as for UB).
Third Party Liability
Are any third parties involved on the facts?
Establishing a Relationship of Influence
May be actual or presumed.
Burden of Proof in Actual Undue Influence
Rest on the party seeking to avoid the transaction.
Elements of Actual Undue Influence
D had capacity to influence P; influence was exercised; exercise was undue (to
obtain benefit of P or third party).
, Presumptive Relationships of Influence
Presumed relationship of influence until the contrary is shown.
Impairment of Judgment
Undue influence targets impairment of judgment of the weaker party.
Independent Advice
Advice received by the weaker party to counteract undue influence.
Coercion
Unfair or improper conduct that may indicate actual undue influence.
Confidential Relationship
A relationship where one party relies on the other for guidance or support.
Equitable Obligation
The duty established in cases of undue influence to ensure fair dealings.
Special Relationship of Influence
A relationship where one party has significant influence over another, such as
parent/child or solicitor/client.
Gift Transfer Challenge
A situation where a transfer of property is contested due to claims of undue
influence.
Antecedent Relationship
A prior relationship that may cast doubt on the fairness of a transaction.
Presumption of Undue Influence
Assumption that influence led to unfair advantage.
Hogg v Hogg
Case establishing parental influence over children.
Guardian and Ward
Legal relationship where guardian has authority over ward.
