What is UNDUE INFLUENCE in Contract Law

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  • čas přidán 18. 02. 2024
  • A contract is said to be induced by undue influence if one party uses their position to dominate the will of the other.
    Here is a complete guide to Contract law: bit.ly/3juVk4F
    Practical example of undue influence:
    Imagine a guy called John, a 70-year-old retiree, is approached by his neighbour, Mark, who happens to be a well-known real estate developer in the area.
    Mark is aware that John recently lost a significant amount of money due to poor investments and is struggling to make ends meet.
    And so, he approaches John and offers him a contract to sell his property for a fraction of its actual value.
    In this case, several factors contribute to the presence of undue influence:
    1. Vulnerable Position
    2. Disparity in Power
    3. Unfair Bargaining Process
    4. Unconscionable Terms
    Undue influence is a vitiating factor because it interferes with freedom of a party to enter into a contract on their own accord.
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