What is undue influence?
Undue influence occurs when someone uses a position of trust or power to persuade
one party unfairly into a contract
It’s less about threats (duress) and more about taking advantage of someone, e.g. A
child persuading an elderly parent to transfer property by exploiting trust
Two types of undue influence
A. Actual undue influence
There is clear evidence of improper persuasion
Examples:
- Emotional pressure
- Manipulation
- Threats of short duress
B. Presumed undue influence
Here, the law helps the weaker party, as you only need to show:
- A relationship of trust, and
- A contract that is suspicious or unusual
Relationships where influence is presumed
Some relationships automatically involve trust:
Parent-Child
Doctor-patient
Solicitor-client
Religious advisor- follower