ABSTRACT
There is a strict obligation upon fiduciaries who receive substantial gifts in unilateral transactions with their principals to demonstrate the fairness of their receipt by showing that independent and sufficient advice was taken before the transaction completed. The point, being that there is this burden upon them to justify their receipt – and quite apart from any issue of undue influence – is important, but yet little known. The rule is nevertheless no questionable novelty, but grounded in established precedent of an earlier era which appears over time to have been overlooked, or otherwise (and disputably) treated as simply concerning undue influence.
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Gavin McLeod, Substantial gifts and unilateral transactions in favour of fiduciaries: the restoration of abuse of confidence, Trusts & Trustees. Published: 20 February 2025.
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