RES exam question on Contract & Agency Law: Madam Koh, 78, transfers a half-share of her flat to her nephew Ivan, who has run her…
Madam Koh, 78, transfers a half-share of her flat to her nephew Ivan, who has run her bank accounts and paid her bills for six years. She took no advice before signing. Madam Koh now seeks to set the transfer aside, arguing that undue influence should be presumed. (i) In certain relationships, such as solicitor and client, trust and confidence is presumed as a matter of law. (ii) Husband and wife is one of the relationships in which trust and confidence is presumed as a matter of law. (iii) Outside those relationships, Ivan's control of her finances can be proved as a fact to show she placed trust in him. (iv) Once undue influence is presumed, the presumption cannot be rebutted, even by showing she had independent legal advice. Which of the following statements are correct?
- A(i), (ii) and (iii) only
- B(iii) and (iv) only
- C(i), (iii) and (iv) only
- D(i) and (iii) only
Show answer & explanation
Answer
D. (i) and (iii) only
Explanation
Answer: (i) and (iii) only. Trust is presumed in law only for set relationships like solicitor and client; otherwise it is proved, and the presumption is rebuttable.(i) True. In Class 2A the law presumes trust and confidence from the relationship itself, as with solicitor and client.(iii) True. This is Class 2B: six years of running her finances, followed by a gift of half her flat without advice, can support it.Rule: Presumed undue influence needs a relationship of trust and confidence and a transaction that calls for explanation. Trust is presumed from some relationships and must be proved on the facts in others; the presumption is rebuttable.Source: BOM v BOK [2018] SGCA 83 (Court of Appeal, classes of undue influence)
Why the other options are wrong
- (ii) False. Husband and wife is not a Class 2A relationship; spouses must prove trust and confidence on the facts.
- (iv) False. Presumed undue influence can be rebutted by showing a free and informed decision, and independent advice is the usual way.
Study the concept behind this question: Contract & Agency Law for the RES Exam
Practise more Law of Contract & Agency questions
Drill the full Law of Contract & Agency bank with instant answers and explanations — free to start, no card needed.
Try a timed set: sit a free RES mock exam, no sign-up needed. Or see the passes for the full question bank.
Related Law of Contract & Agency questions
- RES exam question on Contract & Agency Law: Grace, a salesperson, holds listings from two neighbours, Mr Ali and Mrs Beh, who are…
- RES exam question on Contract & Agency Law: Mr Yap's will leaves his terrace house to his friend Ben "absolutely"
- RES exam question on Contract & Agency Law: Ms Rao exercises an option to buy a condominium unit and lodges a caveat
Get each day's lesson free — one RES topic + the trap, every day on Telegram.
Join @resprepsg →Original study material mapped to the public CEA RES syllabus. Verify any rate-based figures against current IRAS/CPF/MAS rules before relying on them.