The second requirement – that the transaction entered into calls for an explanation – requires that the transaction should warrant some explanation. For instance, party A may, through the exercise of undue influence, induce party B to give a gift to party C. Likewise, undue influence can be exercised to induce another party to enter into a contract. Undue influence is the most used ground in will disputes where the party challenging the will supplies the proof to support its claim. [26] Undue influence is when proof exists that the deceased was taken advantage of by someone they trusted, to create a will that they would benefit from. As the laws of each jurisdiction may be different, you may wish to consult your lawyer. Religious adviser and disciple 1.4. If put on inquiry, a business has a duty to take reasonable care to protect the person they are contracting with from any undue influence. In Barclays Bank plc v O'Brien [1993] UKHL 6 Lord Browne-Wilkinsontried to further sub-divide presumed undue influence into two further categories: (2A) where the courts would presume, solely based upon the nature of the relationship, that the relationship is one with sufficiently significant influence in the form of trust and confidence or ascendan… Solicitor and client 1.5. In the words of Cotton LJ, in Allcard v Skinner (1887) 36 Ch D 145 (CA) (p 171): Your parents are careful in their will to ensure that their estate is fairly distributed and there is no undue influence. [1][23][24] If the plaintiff satisfies this a presumption of undue influence will arise, to which the onus of proof transfers to the defendant, who thereon, must rebut that "in all the circumstances", the relationship between the parties involved "dealings were at arm's length and that the other’s will was in no way overborne by the relationship of confidence" that existed. Another example may include one party constantly pestering, and only stopping if the other to enters into a specific transaction. H In this sense, this category is labelled as ‘rebuttable’. In presumed undue influence, certain relationships, as a matter of law, will raise a presumption of undue influence. This is sometimes referred to as equitable fraud. Actual undue influence. It was held that Mr Lee and Ms Chai were not in a relationship of influence that would attract the operation of the equitable doctrine. [22], The second subgroup covers relationships that do not fall into the first subgroup, but on the facts of case, there was an relationship between the parties that led to undue influence. [37][failed verification], In Germany, to avoid undue influence it is illegal for a testator who is or has been a resident of a nursing home to bequeath any property to any employee of the nursing home. 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. This is an equitable doctrine. Actual Undue Influence: In this scenario, the victim is supposed to present evidence to the court, usually supported by exhibits. There is no requirement of manifest disadvantage. This independent solicitor should be truly independent – it should be a person who does not have any relationship with the purported influencer. DocPro Legal is a team of legal professionals with a passion for making quality documents and legal contract templates widely available to the public through cutting edge technology. To prove undue influence in New York, the person contesting the Will must prove three elements: (1) motive, (2) opportunity and (3) actual exercise of undue influence. [16], 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. One of the main ways to prove that a person has entered into an agreement freely did not is to show that the supposed victim got independent advice regarding the transaction in which undue influence is claimed. Blackmail, Extortion, bad faith threats of criminal prosecution, and oppressive Abuse of Process are classic examples of duress. Relationship between bank and customer can also be considered as relationships of trust and confidence. Courts require that witnesses also testify against the dominant party. 4. If there is direct evidence that a party agreed to a contract under the influence of improper pressure at that time, this will constitute actual undue influence. 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