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Summary LW4001 Contract Law - Undue Influence

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Clear, concise revision notes explaining undue influence as a vitiating factor in contract law. This document provides an accessible and well-structured summary of undue influence, a doctrine that protects parties whose consent has been overborne by pressure, domination, or abuse of trust. These notes explain how undue influence operates to make a contract voidable, and outline the key distinctions, tests, and case authorities you need for exams. Key topics covered include: -The purpose of undue influence in protecting free consent -The difference between actual and presumed undue influence -Relationships that automatically give rise to a presumption of influence (e.g., solicitor–client, doctor–patient, religious adviser–follower) -Cases where the claimant must prove that trust and confidence were abused -Requirements for rebutting the presumption, including independent advice -The role of manifest disadvantage and how modern case law treats it -Third-party cases, such as bank guarantees and the “constructive notice” principle -Remedies, including rescission, and limits on rescission such as affirmation and third-party rights These notes are ideal for students seeking a clear, exam-ready explanation of undue influence, supported by leading cases and easy-to-follow structure.

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Undue Influence



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
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