Lloyds Bank v Bundy [1975]

Defendant (elderly farmer) and son had customers of plaintiff
bank.
Defendant guaranteed overdraft of his son’s company.
Charged farm to bank as security.
Overdraft increased.
Defendant, having taken legal advice, increased guarantee
and security.
Bank manager then told defendant that further guarantee
and security required.
Bank manager did not advise defendant to seek independent
advice.
Defendant signed guarantee and charge.
Court of Appeal held last guarantee and charge should
be set aside for undue influence, since special relationship of confidence
existed between defendant and bank in circumstances of this case.
Denning however believed guarantee and charge could be
set aside on wider ground of inequality of bargaining power.
But said no bargain should be upset which was result
of ordinary interplay of economic forces.