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12 Pages Topic Notes Year Uploaded: 2022

1. INTRODUCTION – Undue influence is an equitable doctrine that applies in situations not covered by common law duress. – Like duress, undue influence renders a contract voidable at the innocent party’s option, i.e. the innocent party may choose to rescind the contract or set up undue influence as a defence. – The doctrine operates largely through the application of rebuttable presumptions. – No precise meaning of “undue influence” – “influence” = pressure? domination? exploitation? dependence? – “undue” = too much? illegitimate? unconscionable? unfair? – “Influence” in itself is perfectly acceptable: it is only when it becomes “undue” that the contract becomes voidable at the innocent party’s option. – The difficulty then is in deciding when does influence crosses the line and becomes “undue”


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