Disclaimer: This work was produced by one of our expert legal writers, as a learning aid to help law students with their studies.

Any opinions, findings, conclusions, or recommendations expressed in this material are those of the authors and do not reflect the views of LawTeacher.net. Any information contained in this case summary does not constitute legal advice and should be treated as educational content only.

Massey v Midland Bank

343 words (1 pages) Case Summary

16th Jul 2019 Case Summary Reference this In-house law team

Jurisdiction / Tag(s): UK Law

Massey v Midland Bank Plc [1995] 1 All ER 929; [1995] 27 HLR 227

Guarantee agreement; misrepresentation; duties of creditor

(296 words)


Ms Massey owned a house. Her companion (although they did not live together), P, convinced to charge the house as security for an overdraft granted to his business. P fraudulently claimed that he would pay of previous, similar charge over the house that Ms Massey had given him for another – failed – business. The bank informed Ms Massey that she would have to receive independent legal advice before it would agree to the transaction. Eventually, Ms Massey was advised by P’s solicitors, following which she signed the charge. Acting on the solicitor’s assurances that Ms Massey was advised, the bank provided P with the money. P’s new business failed, however. Ms Massey was served with a demand and a summons for possession.


Ms Massey declined to satisfy the bank’s demand, arguing that she was induced by P’s fraudulent misrepresentation and undue influence to sign the charge. She claimed that P’s unlawful act affected the bank. The deputy judge disagreed and found in favour of the bank. Ms Massey appealed.


The Court held that in situation like this (i.e. where a person provides security without benefitting from it), the bank would be “put on inquiry”. However, once the bank is satisfied that the person in question received independent legal advice from a solicitor who had knowledge of the proposed charge, it was no longer under a duty to make further inquiries (unless, it had reasons to believe that the advice given was improper). Thus, the bank in this had taken all reasonable steps to make sure that the charge was obtained in acceptable circumstances and that the person received independent legal advice about the charge. Consequently, no constructive notice of P’s misrepresentation was given to the bank and Ms Massey appeal had to be dismissed.

Cite This Work

To export a reference to this article please select a referencing stye below:

Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.

Related Services

View all

Related Content

Jurisdictions / Tags

Content relating to: "UK Law"

UK law covers the laws and legislation of England, Wales, Northern Ireland and Scotland. Essays, case summaries, problem questions and dissertations here are relevant to law students from the United Kingdom and Great Britain, as well as students wishing to learn more about the UK legal system from overseas.

Related Articles