Constructive Notice in UK Law

Leading Cases
  • Barclays Bank Plc v O'Brien
    • House of Lords
    • 21 Oct 1993

    But in surety cases the decisive question is whether the claimant wife can set aside the transaction, not against the wrongdoing husband, but against the creditor bank. Of course, if the wrongdoing husband is acting as agent for the creditor bank in obtaining the surety from the wife, the creditor will be fixed with the wrongdoing of its own agent and the surety contract can be set aside as against the creditor.

    A wife who has been induced to stand as a surety for her husband's debts by his undue influence, misrepresentation or some other legal wrong has an equity as against him to set aside that transaction.

    In particular, if the party asserting that he takes free of the earlier rights of another knows of certain facts which put him on inquiry as to the possible existence of the rights of that other and he fails to make such inquiry or take such other steps as are reasonable to verify whether such earlier right does or does not exist, he will have constructive notice of the earlier right and take subject to it.

    But in my judgment the creditor, in order to avoid being fixed with constructive notice, can reasonably be expected to take steps to bring home to the wife the risk she is running by standing as surety and to advise her to take independent advice.

  • Royal Bank of Scotland Plc v Etridge (No 2); Kenyon-Brown v Desmond Banks & Company (Undue Influence) (No 2); Bank of Scotland v Bennett; UCB Home Loans Corporation Ltd v Moore; National Westminster Bank Plc v Gill; Midland Bank Plc v Wallace; Barclays Bank Plc v Harris; Barclays Bank Plc v Coleman
    • Court of Appeal (Civil Division)
    • 21 Dec 1999

    In relation to the first question, the issue is whether the advice actually given was sufficient to rebut the presumption of undue influence. In relation to the second, the issue is different: it is whether, in the light of the facts known to the bank, including the availability of legal advice, any risk of the wife having an equity reasonably appeared to have been dispelled. The second question depends on how the transaction appeared to the bank.

  • Bank of Credit and Commerce International (Overseas) Ltd v Akindele
    • Court of Appeal (Civil Division)
    • 14 Jun 2000

    For these reasons I have come to the view that, just as there is now a single test of dishonesty for knowing assistance, so ought there to be a single test of knowledge for knowing receipt. The recipient's state of knowledge must be such as to make it unconscionable for him to retain the benefit of the receipt.

  • Credit Agricole Corporation and Investment Bank v Papadimitriou
    • Privy Council
    • 24 Mar 2015

    The rule is that the defendant in this position cannot say that there might well have been an honest explanation, if he has not made the inquiries suggested by the facts at his disposal with a view to ascertaining whether there really is.

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Legislation
  • Compulsory Purchase (Vesting Declarations) Act 1981
    • UK Non-devolved
    • January 01, 1981
    ...... Execution of Declaration . S-3 . Preliminary notices. 3 Preliminary notices. . 3.—Before making a declaration under section ... Effect of Declaration . S-7 . Constructive notice to treat. 7 Constructive notice to treat. . (1) On the vesting ......
  • Law of Property Act 1925
    • UK Non-devolved
    • January 01, 1925
    ......power affecting that estate, whether or not he has notice. thereof, if— . . (i) the conveyance is made under the powers. ...operation of resulting, implied or constructive trusts. S-54 . Creation of interests in land by parol. 54 Creation of ......
  • Conveyancing Act 1882
    • UK Non-devolved
    • January 01, 1882
    ...... . (12) . (12.) This section does not extend to Ireland. Notice. Notice. . S-3 . Restriction on constructive notice. 3 Restriction on ......
  • Town and Country Planning Act 1962
    • UK Non-devolved
    • January 01, 1962
    ......local planning authority a notice requiring his interest in the. land to be so acquired. . (2) Where a ...Supplementary provisions. . S-152 . No withdrawal of constructive notice to treat. 152 No withdrawal of constructive notice to treat. . . ......
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Books & Journal Articles
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Law Firm Commentaries
  • Time bars under FIDIC 2017 – are more notices the answer?
    • JD Supra United Kingdom
    Construction and engineering contracts often contain provisions specifying that, within a particular time, one party (traditionally the contractor) must notify the other (the employer and/or the co...
    ...... taken place and been well-minuted, it is usually possible to demonstrate that notice was given in any event – generally known as “constructive notice”. This is especially the case as, despite its consequence, sub-clause 20.1 (even taking account of sub-clause 1.3 requirements) has little ......
  • Financial Markets Disputes and Regulatory Update - Summer 2015 Issue 1
    • JD Supra United Kingdom
    In This Issue: - What is worth remembering from the first half of 2015? - Judgments - so far this year… ..Jurisdiction for claims in...
    ...... - LMA standard terms 10 . When a bank is on constructive notice of wrongdoing 10 . Satisfaction of delivery obligations under ......
  • Negative Pledges In Commercial Real Estate Financings ' Why Do We Need Them?
    • Mondaq UK
    ......This has. significant implications in respect of notice to subsequent lenders. or prospective creditors, and it greatly increases ...(ii) Constructive notice: if the new creditor does not have. actual notice of the negative ......
  • Caught In The Tangled Web
    • Mondaq UK
    ...... case in which the claimant alleged that a bank held money on constructive trust for her. The bank said that it was a bona fide purchaser for value, with no notice which would suggest the existence of a prior proprietary claim. The bank ......
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