Undue Influence

Question 1

What is undue influence?

Answer 1

Influence which goes beyond what is regarded as acceptable or when one party is in a position to influence another and takes unfair advantage

Question 2

Actual undue influence

Answer 2

The party alleging the undue influence must prove it, that at the time of the contract, they were not able to exercise free will into entering it

When the third party is put on notice that there may be a wrong doing behind the loan

Question 3

Constructive undue influence

Answer 3

When the third party ought to be put on notice that there is a wrong doing behind the loan

Question 5

Presumed undue influence

Answer 5

When there is a relationship of trust and confidence and the transaction calls for an explanation

Question 6

With presumed undue influence, where does the burden of proof fall?

Answer 6

Burden of proof falls on the other party to prove there has been no undue influence

Must show that the party alleging had full knowledge of the character and effect of the contract when entering

The party alleging had independent and impartial advice before entering