undue influence in contract

Guri Bee

2 min read

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18-10-2024

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Undue Influence: When Your Consent Doesn't Count

Have you ever felt pressured into signing a contract, even if you didn't truly want to? That's the essence of undue influence, a legal doctrine that protects individuals from contracts formed under unfair pressure. This article will explore what undue influence is, how it impacts contracts, and what you can do if you believe you've been subjected to it.

What is Undue Influence?

Undue influence occurs when one party (the dominant party) takes advantage of a special relationship with another party (the weaker party) to manipulate them into signing a contract. This manipulation can be subtle or overt, but it always results in the weaker party signing a contract they wouldn't have otherwise agreed to.

Think of it this way: If you're signing a contract with your doctor, you might feel obligated to agree even if you have reservations. This is because the doctor holds a position of power and trust, which could be abused to influence your decision.

Here are some key factors to consider when determining undue influence:

• The relationship between the parties: Is there a power imbalance, such as a doctor-patient relationship, a parent-child relationship, or an employer-employee relationship?
• The nature of the influence: Was there any coercion, manipulation, or threats involved?
• The weaker party's vulnerability: Was the weaker party under duress, suffering from illness, or lacking the capacity to understand the contract?

How Undue Influence Affects Contracts

If undue influence is proven, the contract can be declared voidable by the weaker party. This means that the weaker party can choose to either uphold the contract or have it nullified.

Here's an example: Imagine a young woman is pressured by her wealthy grandmother to sign a contract giving away her inheritance. The woman feels obligated to comply, even though she doesn't understand the full implications of the contract. If the woman later discovers that the contract was unfair, she can argue that it was signed under undue influence and seek to have it voided.

Key Takeaways from GitHub Discussions:

• "Undue influence can be subtle and difficult to prove." (Source: GitHub Discussion) - This highlights the challenge of proving undue influence. Often, there isn't a direct threat or act of force, but rather a gradual erosion of the weaker party's autonomy.

• "The burden of proof lies with the party claiming undue influence." (Source: GitHub Discussion) - This means that the person claiming undue influence must present evidence to support their claim.

How to Protect Yourself from Undue Influence:

• Be aware of the signs: Watch out for pressure tactics, threats, or attempts to rush you into a decision.
• Seek independent advice: Talk to a lawyer or trusted advisor before signing any contract, especially if you feel pressured.
• Document everything: Keep records of all communications, meetings, and any attempts to influence you.
• Don't hesitate to say no: You have the right to refuse a contract, even if you feel pressured.

Understanding undue influence is crucial to protecting yourself from unfair contracts. By being aware of the signs, seeking advice, and documenting everything, you can ensure that your consent is truly informed and voluntary.