Proof of good faith in transactions where one party is in relation of active confidence
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Summary
When one party occupies a position of active confidence toward the other (for example a lawyer, guardian or parent dealing with a client or dependent), the person in that trusted position must prove the transaction was in good faith. The rule applies whenever the fairness of such a deal is challenged in court. The burden of proof shifts to the trusted party, not the complainant.
Example
Ravi sells his shop to his advocate and later sues saying the sale was unfair. Because the buyer was Ravi's advocate and stood in a position of active confidence, the advocate must prove the sale was in good faith.
Bare Act
Enacted textWhere there is a question as to the good faith of a transaction between parties, one of whom stands to the other in a position of active confidence, the burden of proving the good faith of the transaction is on the party who is in a position of active confidence.
Illustrations.
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(a) The good faith of a sale by a client to an advocate is in question in a suit brought by the client. The burden of proving the good faith of the transaction is on the advocate.
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(b) The good faith of a sale by a son just come of age to a father is in question in a suit brought by the son. The burden of proving the good faith of the transaction is on the father.
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