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Hi I have an exam soon on the topic of undue influence, I feel confident in my understanding but struggle with applying the law to problem questions can anyone help me on how I would tackle this question as an example? Thanks in advance

Geoff and Anne live together at Rose Cottage, a property registered in their joint names. Geoff is a self employed photographer, working from home and Anne works part time in the local Cats Home. In May 2014 Geoff told Anne that his business was doing very well and that he would like to extend the house by the addition of a new darkroom/office. He said he would need a bank loan of £10,000 and that not only would his business benefit but the house would increase in value. Anne was pleased and, not for the first time, glad that Geoff was able to take care of these matters. Unbeknown to Anne, Geoff had other plans for the money – he has developed an expensive gambling habit and has already run up a debt of £15,000.

Geoff visited the Small & Friendly bank on 2nd May and saw the assistant manager, Mr Brown, who invited him to joint the local business luncheon group. Geoff took the opportunity to mention that he was seeking a loan of £25,000, explaining that he wished to expand his business and improve his home at the same time. He said that his current account was overdrawn by £15,000 only because he was awaiting substantial outstanding payments from customers over the next few months. Mr Brown said that for a loan of £25,000 the bank would require a charge on the house and that both Geoff and Anne would have to ‘sign the necessaries’. Geoff said that would be no problem – Anne was as excited as he was about the project. The two men have arranged to meet in two weeks time to progress the matter.

What are the implications of Geoff’s behaviour and what steps should the bank take in this situation?

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