Undue influence on guarantor .Midland Bank v Serter & Another (1995). (CA (Glidewell LJ, Pill LJ,
Aldous LJ) 2/3/95)
Summary: Undue influence on wife/guarantor not to be imputed to lending bank unless solicitor advising her is instructed by the bank.
Wife's appeal against order for possession of the matrimonial home which she had jointly charged in company with her husband to enable him to continue membership at Lloyd's. She had counterclaimed that the charge was not binding on her as she had entered it under the undue influence of her husband at a lunch where she had consumed alcohol; although she had also signed a certificate stating that her husband's solicitor had explained the nature and consequence of signing the charge.