Bank of Credit and Commerce International S.A. v. Aboody

Bank of Credit and Commerce International S.A. v. Aboody [1992] 4 All ER 955 is an English contract law case relating to undue influence.

BCCI SA v. Aboody
CourtCourt of Appeal
Full case nameBank of Credit and Commerce International Société Anonyme v. Aboody and another
Citation(s)[1992] 4 All ER 955
Case opinions
Slade LJ
Keywords
Undue influence

FactsEdit

Mrs. Aboody signed a document making a charge over the family home in favour of Bank of Credit and Commerce International, to secure her husband’s borrowing for his company. Mr. Aboody had bullied her, and she had signed to get some peace.

JudgmentEdit

Slade LJ held that because of National Westminster Bank plc v Morgan [1985] UKHL 2 "manifest disadvantage" had to be shown even in cases of actual undue influence. The transaction was not manifestly disadvantageous, but this requirement was subsequently overruled in CIBC Mortgages plc v Pitt [1993] UKHL 7 (21 October 1993).

See alsoEdit