READ 104- Assignment one - Part B Explain in your own words the principle of fairness expressed by Dixon J in Yerkey v Jones and discuss how this principle influenced the High Court's decision in the case of Garcia v National Australia Bank. The principle YerkeyDixon J, in his judgment on the case of Yerkey v Jones, established a principle of fairness in relation to married women which would influence other cases in the future such as Garcia v National Australia Bank. The principle outlined by Dixon J in the Yerkey case essentially states that if a married woman's consent to be surety for her husband's debt is made by her husband, and without understanding the implications for his behaviour, she signs a suretyship agreement which a the external creditor accepts without dealing directly with her, the wife can “have it set aside”. The principle in Yerkey consists mainly of two parts. First, where a wife's consent to a surety document is obtained through "undue influence" (taking advantage of another person in legal arrangements) by a husband, the wife will be able to set aside the deed against the creditor to unless the creditor can demonstrate that the wife knew what she was agreeing to after consulting with an attorney. In the context of Yerkey v Jones, "actual influence" (clear evidence that there was an imbalance of power at the time the agreement was signed) must be demonstrated by a wife, "undue influence" will not simply be assumed from marriage the relationship between a husband and a woman. However, it is not necessary for the creditor to know that "undue influence" has occurred in the contract, but it is sufficient for the creditor to be aware of the marriage between husband and wife for a surety document to be cancelled... ... half of the document ... the explanation of the basis of the "special principle of fairness", gives the principle more weight and makes it more capable of changing and applying to current relationships and sensitivities. The High Court held that Dixon J's opinion did not represent the views of the majority of judges in the Yerkey decision and that it therefore could not constitute binding precedent. The Yerkey Principle has come under increasing criticism for its failure to recognize the current status of women and its approach to "undue influence". Garcia represents a departure from English and Australian precedents that rejected the Yerkey principle. The extension of the Yerkey principle now impacts Australia's 'undue influence' law, with the majority now agreeing to a policy of greater protection for relationships and dependencies of trust and faith.