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BCCI v Aboody [1989] 2 WLR 759. A husband and wife owned a family company and the company’s liabilities to its bank were secured, among other things, by charges of the wife’s house. The bank sought to enforce the securities and the wife pleaded actual undue influence by the husband.
Because the definition of undue influence can be subjective, California Welfare and Institutions Code section 15610.70 provides clarity: ““Undue influence” means excessive persuasion that causes another person to act or refrain from acting by overcoming that person’s free will and results in inequity.”. Given the subjective nature of ...
This post discusses case law surrounding undue influence, as well as providing 20 tips to help a plaintiff's counsel in winning an undue influence trial.
Can undue influence be actionable against a third party? 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.
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’.
What exactly is Undue Influence? “The striking feature of this appeal is that fundamental misconceptions persist even though the doctrine is over 200 years old and its basis and scope were examined by the House of Lords in depth (in 374 paragraphs) less than 3 years ago in the well known case of RBS v Etridge. The continuing confusions matter.
In contrast, in cases of actual undue influence, the party arguing that a particular contract is voidable due to undue influence must prove the existence of undue influence. Second, the law distinguishes between two types of situations giving rise to a presumption of undue influence.
