Undue influence? |
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Part of the common law series
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| Contract theory |
| Classical theory · Promise theory |
| Consent theory |
| Contract formation |
| Offer and acceptance · Mailbox rule |
| Mirror image rule · Invitation to treat |
| Consideration |
| Defenses against formation |
| Lack of capacity to contract |
| Duress · Undue influence |
| Illusory promise · Statute of frauds |
| Non est factum |
| Contract interpretation |
| Parol evidence rule |
| Integration clause |
| Excuses for non-performance |
| Mistake · Misrepresentation |
| Frustration of purpose · Impossibility |
| Illegality · Unconscionability |
| Accord and satisfaction |
| Rights of third parties |
| Assignment · Delegation |
| Novation · Third party beneficiary |
| Breach of contract |
| Anticipatory repudiation · Cover |
| Exclusion clause |
| Fundamental breach |
| Remedies |
| Liquidated damages · Penal damages |
| Specific performance · Rescission |
| Other areas of the common law |
| Tort law · Property law |
| Wills and trusts |
| Criminal law · Evidence |
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Undue influence (as a term in jurisprudence) is an equitable doctrine that involves one person taking advantage of a position of power over another person.
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Undue influence in contract law
If undue influence is proved in a contract (at least in Australia), the contract is voidable by the innocent party, and the remedy is rescission. There are two categories to consider:
- Presumed undue influence
- Actual undue influence
Presumed undue influence
First subgroup
In the first subgroup, the relationship falls in a class of relationships that as a matter of law will raise a presumption of undue influence. Such classes include:
- Parent/child
- Guardian/ward
- Priest/member of parish
- Solicitor/client
- Doctor/patient
In such cases, the onus of proof lies on a doctor, say, to disprove undue influence on a patient.
Second subgroup
The second subgroup covers relationships that do not fall into the first subgroup, but on the facts of case, there was an antecedent relationship between the parties that led to undue influence. The test is one of whether there was a relationship of such trust and confidence that it should give rise to such a presumption (see Johnson v. Buttress (1936) 56 CLR 113).
Actual undue influence
An innocent party may also seek to have a contract set aside for actual undue influence, where there is no presumption of undue influence, but there is evidence that the power was unbalanced at the time of the signing of the contract.
See also
- Compare with duress (contract law)