Unjust Contracts - Questions for Clients
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Contents:
A. Background
1. Personal Details of Client:
- Date of birth?
- Client's health (and particularly their mental health) at time of executing documents and at present?
- Marital status/children?
- Client's first language? If not English, what is client's command of
English (written and spoken)?
- Client's educational history?
- Can the client read and write?
2. Client's work history (and in particular, business experience) including
nature of tasks undertaken.
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B. Financial Background
3. At the date s/he signed the document(s) what was the
financial position of the client?
4. What is the client's present financial position?
5. What mortgages or guarantees, if any, has the client
previously entered into?
6. What previous contracts, if any, has the client signed?
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C. The Transaction
7. In relation to the contract mortgage or guarantee signed by the client:
- Where was it signed? (e.g., at home on the kitchen table - Amadio's case); in the car yard, etc.. If the latter, details of any signs on display
in an office may be important.
- Why was it signed there (e.g., did the creditor arrive on client's doorstep)?
- Who was present when it was signed?
- What was said when it was signed? (As much detail as possible, in fact actual words spoken if a client can recall). In particular what was said to the client, if anything about the legal and practical effect of what they signed? (e.g., did the client know that s/he could lose the house if they signed the mortgage?)
- How long did the meeting last (and what time of day was it)?
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D. Reasons for The Transaction and Understanding of the Transaction.
8. Why did the client sign the loan, guarantee or mortgage? (In other words,
what benefit, if any, did they receive or hope to receive directly or
indirectly as a result)? (Note Garcia v N.A.B. - client received no benefit)
9. Was the client influenced to sign the contract?
- If yes, by whom?
- How was the client influenced?
- What relationship does the client have with the person who influenced him/her?
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10. At the end of execution of the loan/ guarantee/ mortgage:
- What did the client understand to be the legal and practical effect of the mortgage/ guarantee?
- What was the likelihood of the client/ borrower being able to repay the interest on the loan?
- How likely was it that the client/ borrower would have been able to repay the principal at the end of the loan?
11. Prior to the time of executing the documents what, if any, legal or other
independent advice did the client receive?
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E. Documents
12. What documents does the client recall signing?
13. What documents, if any, does the client currently hold? (please make
photocopy).
F. Please ask the client to sign and date the appropriate
number of "Authority to Release" forms
Produced by Redfern Legal Centre.
This factsheet is no substitute for legal advice. If you have a problem
please seek legal advice from your local community legal centre
Last updated March 2006
