Contract1.6 - Undue Influence

Question 1

Where there is doubt as to whether any act of coercion is duress or undue influence

Answer 1

The claimant should bring actionn on both grounds

Question 2

The definition of undue influence is RBS v Etridge 2002

Answer 2

“a person’s consent to a transaction was produced in a way such that the consent ought not fairly to be treated as the expression of their free will”

it is “impossible to be more precise or definitive”

Question 3

Etridge - two types of undue influence

Answer 3

1) overt acts of improper pressure or coercion such as unlawful threats

2) one party has influence or ascendancy over the other, the first party takes advantage of that ascendancy = underlying influence and takes unfair advantage

Question 4

Overt acts of improper pressure or coercion

Answer 4

Rare for undue influence, more likely to be decided under duress.

Question 5

Advantage / Influence / Ascendancy in a relationship

Answer 5

Spouse’s share in the matrimonial home is used as security for a loan.
If trust is abused can amount to undue influence.

Question 6

Irrebuttable presumption of influence

Answer 6

Parent & Child
Guardian & ward
Trustee & beneficiary
Solicitor & client
Doctor & patient

Question 7

When is influence not presumed in relationships?

Answer 7

Parent & adult child
Spouses

Influence has to be positively shown

Question 8

Proof of influence or ascendancy in a relationship

Answer 8

• trust and confidence
• transaction which requires explanation.

=> burden of proof shifts to the defendant.

Question 9

When would a transaction require explanation

Answer 9

b