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It has been confirmed that undue influence by a third party on a claimant may give rise to a claim for undue influence, which can result in the contract between the claimant and the party they are contracting with being voidable.
Where a transaction (gift or contract) has been obtained by certain kinds of improper pressure which were thought not to amount to coercion because it does not involve any element of violence to the person or detention of property, the law gives relief on grounds of undue influence. Consent and Free Consent.
Jan 22, 2021 · Undue influence is an equitable doctrine in contract law that refers to circumstances in which an individual with more power places improper pressure on the weaker party to induce them into entering a contract against their will. If undue influence is found, this will invalidate the contract, which helps protect freedom of contract.
The Requirements. To establish the defence of undue influence, the claimant must establish that: They were influenced to enter into the contract (or give the gift) by the defendant; and. The influence exercised by the defendant was ‘undue’.
The law on undue influence is provided in Section 16 of the Contracts Act. Section 16 has embodied the English equitable doctrine. The traditional actual and presumed undue influence in s where the courts have applied in s (1) for cases of actual undue influence and s (2) for cases of presumed undue influence.
Undue influence exists where a contract has been entered as a result of pressure which falls short of amounting to duress, the party subject to the pressure may have a cause of action in equity to have the contract set aside on the grounds of undue influence.
Jan 1, 2024 · When the court tries to detect the use of undue influence to create a contract, it looks out for the following: An aggressive initiation of transaction. The prevention of a relationship from external supervision. The discouragement of a disadvantaged party from trying to find independent advice.
2 days ago · This article explores what undue influence is, how it manifests in contract law and the legal remedies available.
Element Section 67 of CA 1950 – the rescission of a voidable contract may be communicated or revoked in the same manner, and subject to the same rules, as apply to the communication or revocation of proposal. Give a notice to the other party. Apply to court (Sec 34 (1) (a) of SRA.
UNDUE INFLUENCE. Defined in s. 16 (1) CA 1950. Claimant must show- At the time of contract, there was a special relationship between the parties, The defendant was in a dominant position The defendant used that dominant position to obtainan unfair advantage over the claimant.
