Cheese v Thomas [1994]

Cheese v Thomas [1994] 1 WLR 129 revolved around the plaintiff, Cheese, seeking to rescind a contract with his nephew, Thomas, and claim restitution for the £43,000 he had contributed towards the purchase of a house valued at £83,000. The agreement included the stipulation that Cheese would reside in the house until his death. Subsequently, Cheese discovered that Thomas had failed to make several payments, prompting Cheese to seek the voiding of the agreement and the recovery of his £43,000.

The Court of Appeal held that the transaction should be set aside due to presumptive undue influence and manifest disadvantage. While restitution was granted, the court determined that the losses incurred in the sale of the house should be equally shared between Cheese and Thomas.

Sir Donald Nicholls V-C emphasised the fundamental objective of the court in restitution, which is to restore the parties to their original positions to the extent possible after nullifying a legally impermissible transaction. This objective necessitates a thorough examination of all relevant circumstances while keeping the restoration goal firmly in mind.

The court's decision to apportion losses equally between the parties was grounded in their shared intention for joint enjoyment of the house. Sir Donald Nicholls V-C expressed the principle that just as parties share in profits, they should also share in losses, aligning with their mutual intent for joint benefits and responsibilities regarding the property.

In essence, this case highlights the equitable nature of restitution, aiming to rectify imbalances resulting from transactions tainted by factors such as undue influence. The decision underscores the importance of considering the parties' intentions and circumstances in determining the appropriate apportionment of losses when ordering restitution.
Back to blog
UOL Case Bank

UOL Case Bank

Upon joining, you become a valuable UOL student and gain instant access to over 2,100 case summaries. UOL Case Bank is constantly expanding. Speed up your revision with us now.

Subscribe Now

Where are our students from?

Yale University
Council of Europe
Baker Mckenzie 
University of Chicago
Columbia University
New York University
University of Michigan 
INSEAD
University College London (UCL)
London School of Economics (LSE)
King’s College London (KCL)
University of London
University of Manchester
University of Zurich
University of York
Brandeis University
University of Exeter
University of Sheffield
Boston University
University of Washington
University of Leeds
University of Law
Royal Holloway, University of London 
Birkbeck, University of London
SOAS, University of London
University of Kent
University of Hull
Queen’s University Belfast
Toronto Metropolitan University
Hong Kong University of Science and Technology
University of Buckingham

  • Criminal Practice

    Diagrams and Charts

    Our carefully designed diagrams and charts will guide you through complex legal issues.

  • Criminal Law

    Clear and Succinct Definitions

    Key concepts are concisely defined to help you understand legal topics quickly.

  • Property Law

    Statutory Provisions

    Statutory provisions are provided side by side with legal concepts to help you swiftly locate the relevant legislation.

  • Public Law

    Case Summaries

    We have summarised important cases for you so that you don't need to read long and boring cases.

  • Evidence

    Rules and Exceptions

    Rules and exceptions are clearly listed so that you know when a rule applies and when it doesn't.

  • Company Law

    Terminology

    Legal terms and key concepts are explained at the beginning of each chapter to help you learn efficiently.

  • Case Law

    Case law is provided side by side with legal concepts so that you know how legal principles and precedents were established.

  • Law Exam Guide

    Law Essay Guide

    You will learn essential law exam skills and essay writing techniques that are not taught in class.

  • Law Exam Guide

    Problem Question Guide

    We will show you how to answer problem questions step by step to achieve first-class results.

  • Conflict of Laws

    Structured Explanations

    Complex legal concepts are broken down into concise and digestible bullet point explanations.

  • Legal System and Method

    Legal Research

    You will learn legal research techniques with our study guide and become a proficient legal researcher.

  • Jurisprudence and Legal Theory

    Exam-focused

    All essential concepts, principles, and case law are included so that you can answer exam questions quickly.