Description of the legal term Undue Influence:
Undue influence in British legal context refers to a situation where one person takes advantage of their power over another person, resulting in the latter being coerced or manipulated into making a legal decision against their will or best interest, such as entering into a contract or making a gift. This can occur within relationships where one party is in a position to dominate the will of the other, typically due to factors such as trust, dependence, or vulnerability.
The doctrine protects against abuse of power and ensures that all agreements are the product of free will. The UK courts recognise two categories: actual undue influence and presumed undue influence. Actual undue influence entails clear evidence that the influencer exerted undue pressure on the victim. Whereas, presumed undue influence arises where there is a relationship of trust and confidence, and the transaction cannot be readily explained by the relationship of the parties.
The burden of proof shifts depending on the type of undue influence claimed. In cases of actual undue influence, the claimant must prove that the defendant used such influence. For presumed undue influence, once a claimant establishes the existence of a relationship where influence could be exerted, the burden shifts to the other party to disprove it.
The courts will look at various factors such as the nature of the transaction, whether independent advice was sought, and the overall fairness of the outcome. If undue influence is established, the transaction can be set aside.
Legal context in which the term Undue Influence may be used:
For instance, take the case where an elderly individual, who relies on his niece for everyday care and company, is persuaded to modify his will in her favor, cutting out other family members who had previously been included. No evidence of overt pressure may be present, but given the relationship’s dynamics — trust, dependency, and vulnerability — the courts may presume undue influence. It would then be for the niece to demonstrate that her uncle acted freely.
Another contextual example is a scenario involving a young couple where one partner is significantly wealthier and the other has little financial acumen. If the wealthier partner pressures the other into signing a contract, like a prenuptial agreement that heavily favors the wealthier partner, without the other receiving independent legal advice, this could be contested on grounds of undue influence.
The significance of undue influence in the British legal system cannot be overstated. It serves as a crucial mechanism to ensure contractual fairness and to protect individuals against exploitation in relationships where power imbalances exist. It underpins the equitable principle that agreeable interactions and legal obligations should emanate from the free and informed consent of all parties involved. This doctrine is thus fundamental in upholding justice and equality before the law in a myriad of interpersonal transactions and agreements.
