What is the test for establishing that a transaction is bona fide?
British Columbia, Canada
The following excerpt is from Gresham v. Gresham (Trustee of), 1993 CanLII 1421 (BC CA):
7 The trial judge quoted from the case of Koop v. Smith (1915), 1915 CanLII 26 (SCC), 25 D.L.R. 355 for the proposition "that where a transaction takes place between near relations under suspicious circumstances the burden is on the related parties to establish that the transaction was bona fide".
8 That proposition is valid for a case such as Koop v. Smith in which the brother transferred property to his sister for a money consideration, the existence of which the trial judge did not accept. In other words, the trial judge found that the sister had not given any consideration for the transfer.
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