Undue Influence Flashcards
What is the effect of a successful claim of undue influence?
A. The contract is voidable and may be rescinded
B. The contract is void from the outset
C. The contract must be rewritten
D. The court awards compensation only
A. The contract is voidable and may be rescinded
Explanation: Undue influence renders a contract voidable, meaning it can be set aside at the discretion of the court.
A wife offers her interest in the home as security for her husband’s business loan. He doesn’t pressure her, but she relies heavily on him. She receives independent legal advice. Can she still claim undue influence?
A. No, because the advice makes the claim impossible
B. No, because there was no overt pressure
C. Yes, because the relationship is automatically presumed to be one of influence
D. Yes, if she proves the advice was inadequate
D. Yes, if she proves the advice was inadequate
Explanation: Even with legal advice, undue influence may still apply if the advice wasn’t sufficient or didn’t break the influence.
A solicitor receives a substantial gift from a long-term client. There is no independent advice. What is the most likely outcome?
A. The gift will be presumed valid unless challenged
B. There is a rebuttable presumption of duress
C. The client must prove bad faith
D. The burden shifts to the solicitor to disprove undue influence
D. The burden shifts to the solicitor to disprove undue influence
Explanation: Where there’s a relationship of trust and a transaction calling for explanation, the burden shifts.
Which relationship gives rise to an irrebuttable presumption of influence in English law?
A. Husband and wife
B. Trustee and beneficiary
C. Employer and employee
D. Adult child and parent
B. Trustee and beneficiary
Explanation: Certain relationships, like trustee–beneficiary and doctor–patient, automatically involve presumed influence.
Which of the following is not a valid way to raise the presumption of undue influence?
A. Showing a suspiciously one-sided transaction between strangers
B. Proving a confidential relationship and a transaction that calls for explanation
C. Showing overt coercion and threats
D. Citing a recognised relationship like doctor and patient with an unusual transaction
A. Showing a suspiciously one-sided transaction between strangers
Explanation: Without a relationship of trust, the presumption does not arise, even if the deal seems unfair.
What is a core distinction between undue influence and duress?
A. Undue influence requires physical harm
B. Duress focuses on emotional manipulation
C. Duress involves overt threats; undue influence can be subtle
D. Duress only applies in family settings
C. Duress involves overt threats; undue influence can be subtle
Explanation: Duress usually involves direct coercion, while undue influence often relates to abuse of trust or dependence.
According to RBS v Etridge (No 2), undue influence exists where:
A. Consent was produced by influence that undermines free will
B. There was a verbal threat during contract negotiations
C. The transaction was signed without a lawyer
D. The parties are financially unequal
A. Consent was produced by influence that undermines free will
Explanation: The test is whether the agreement was a true expression of free will – if not, undue influence may apply.
A spiritual leader persuades a vulnerable follower to donate their home. The follower later regrets it and claims undue influence. What is most likely?
A. The burden is on the follower to prove coercion
B. The court will presume influence and shift the burden to the leader
C. The gift stands because it was voluntary
D. The court will treat it as a gift, not a contract
B. The court will presume influence and shift the burden to the leader
Explanation: In spiritual/advisory roles, the court may presume influence when combined with a transaction needing explanation.
