Under s37 of the SRA 1950 the court may require him to make compensation where

Under s37 of the sra 1950 the court may require him

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Under s.37 of the SRA 1950 , the court may require him to make compensation where justice may require. A contract, which is avoided on grounds of misrepresentation or fraud becomes a void contract. s.66 provides that when an agreement is discovered to be void, or when a contract becomes void, any person who has received any advantage must restore it, or to make compensation for it, to the person from whom he received it. In the Indian case of Satgurprasad v Har Narain [1932] , it was held that although s.66 provided for void contracts, it also covered voidable contracts that had been rescinded. Where the innocent party elects to affirm the contract and claims for compensation
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s.73 provides that a person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it. ( entitled to recover so much of the charge as was illegally excessive. ) In Chin Nam Bee Development v Tai Kim Choo [1988] , the court stated that s.73 is not confined to money only. It also applies to other forms of goods which must be returned if obtained by coercion. Undue Influence Where the consent has been obtained by some form of pressure applied improperly on the victim, the contract becomes voidable. The contract is said to be vitiated for lack of consent. The burden of proving such undue influence has been exercised normally lies on the person seeking to rescind the contract. s.10 of the CA 1950 provides that all agreements are contracts if they are made by the free consent of the parties. *** from here, you know the word of ‘agreement’ is actually different from the word of ‘contract’; the agreement is merely non-binding agreement but the a contract is a binding agreement. s.14(b) provides that consent is said to be free when it is not obtained by undue influence as defined in s.16. s.16(1) provides that “undue influence” occurs where (a) there is a relationship between the parties and one party is in position to dominate the will of the other and (b) The dominant party uses that position to obtain an unfair advantage over the other. In Poosathurai v Kannappa Chettiar & Ors [1919] , the PC held that showing mere influence is insufficient. The innocent party must show undue influence in that the dominant party has obtained an unfair advantage. In Polygram Records v The Search , the court held that the doctrine of undue influence embodied in s.16 of the Act is in substance based on the English position.
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In Barclays Bank plc v O’Brien & Anor , the HOL approved of the following classification and effect of actual and presumed undue influence: (a) Class 1 - actual undue influence Here it is necessary for the claimant to prove affirmatively that the wrongdoer exerted undue influence on the complainant to enter into the particular transaction which is impugned. (b) Class 2 - presumed undue influence Here the complainant only has to show in the first instance, that there was a relationship of trust and confidence between the complainant and the wrongdoer of such a nature that it is fair to presume that the wrongdoer abused the relationship in procuring the complainant to enter into the impugned transaction. There is no need to produce evidence that actual undue influence was exerted in relation
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