Ann lives in a large house which was left to her by her parents. She also has a valuable collection of jewellery which was left to her by her mother. In 2015, when she was 18 years old, Ann married Paul who was 30. Ann allows Paul to make most of the decisions of the household, and most of the time they live together happily. At times however, Paul shows he has a fiery temper. Therefore, in 2016, when Paul asked Ann to sell him a half share of the house for $200,000, Ann feared what Pauls reaction would be if she refused. She reluctantly agreed, even though the house was worth at least $800,000. The sale for $200,000 took place and Pauls name was entered onto the Land Register as a joint owner of the house.

Two years later Pauls sole trader business was running into difficulties and he owed substantial sums of money to many of his suppliers. He asked the bank for a loan of $1,000,000 to help him out. The bank manager, who is an old friend of Pauls, agreed but required security for the loan. The value of the family home was not sufficient - the bank required additional security. Paul told the manager that Anns jewellery is worth around $200,000 and said he would ask Ann to come into the bank and sign guarantees over the house and her jewellery.

Paul told Ann he would lose his business unless she agreed to join with him in guaranteeing a loan from the bank using the house and the jewellery as security.

Ann reluctantly went to the bank with Paul. Ann is very attached to her mothers jewellery and was particularly worried about using it as a security. However, the manager told her that there was little danger of her losing her jewellery or the family home, as Paul is a great business-man and will soon be back on top. The manager also said that she could consult her own solicitor if she really thinks it is necessary. Ann felt constrained by Pauls presence and replied: No thank you, I am happy to trust Paul.

In early 2019, a year after the loan was made, Pauls business has collapsed with debts of $900,000, and the bank is seeking to enforce the security by taking possession of the house and Anns jewellery.

REQUIRED

Ann now claims she was subject to duress by Paul when she agreed to the transfer of a half-share in the house to him. Apply the relevant law to the facts and advise Ann of her likelihood of success with this claim.

Ann claims her signed guarantee to the bank should be set aside on grounds of imputed undue influence. Apply the relevant law to the facts and advise Ann of her likelihood of success with this claim.