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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