Undue Influence in a Contract

8/17/2019 Undue Influence in a Contract

1/22

SVKM’s

NMIMS SCHOOL OF LAW

A PROJECT SUBMITTED ON

Undue Influence

IN COMPLIANCE TO PARTIAL FULFILLMENT OF THE MARKIN

SCHEME! FOR TRIMESTER III OF "#$%&"#$'!

IN THE SUBJECT OF

LAW OF CONTRACT

SUBMITTED TO FACULTY:

Prof. Sunil Gorge

FO E!ALUATION

SUBMITTED B()

A"#il$%#$ P$n& 'A()*+

INDE*


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$+ S&$&u&e%,,,,,,,,,,,,,,,,,,,,,,,,.*

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2. Leg$l An$l1%i%,,,,,,,,.,,,,,,,,,,,.,,..7

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9. Co3$r$&i-e %&u1,,,,,,,,,,,,,,,,,,,..87

,+ Con/lu%ion,,,,,,,,,,,,,,,,,,,,,...,*(


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S-.-u-es

8. Se/&ion 82 of T#e Ini$n Con&r$/&% A/& 879*

*. Se/&ion 86 of e Ini$n Con&r$/& A/& 879*

A//0e12.-23ns

8. AI ; All Ini$ e3or&er%

*. -. ; !er%u%

). ICA< Ini$n Con&r$/&% A/&


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4If -5e c0ed2-30 /.n6 5.s n3-2ce! .c-u.l 30 c3ns-0uc-21e! 3f undue 2nfluence e7e0c2sed /8 -5e

5us/.nd 9.nd c3nse:uen-l8 3f -5e ;2fe’s e:u2-8 -3 se- .s2de -5e -0.ns.c-23n< -5e c0ed2-30 ;2ll

-.6e su/=ec- -3 -5.- e:u2-8 .nd -5e ;2fe c.n se- .s2de -5e -0.ns.c-23n .>.2ns- -5e c0ed2-30+++.s

;ell .s .>.2ns- -5e 5us/.nd+?

'Per Lor Bro=ne< >il?in%on in B$r/l$1% B$n? 3l/ - O Brien '8@@0+ 8 AC 87( $& 8@8+

INTRODUCTION

T#e o/&rine of unue influen/e eri-e% fro Engli%# /our&%. A =ill /on&e%& #e$r "1 Sir Fr$n/i%B$/on $% e Lor C#$n/ellor of Engl$n in 8689 illu%&r$&e% /oon $%3e/&% of e 3ro/e%% of

unue influen/e =#i/# eerge in e /on&e& of $ =ill /on&e%&. T#e%e $%3e/&% in/lue fr$il

#e$l $n 3#1%i/$l e3enen/1 f$l%e $ffe/&ion rel$&ion%#i3 3oi%oning re$&% $n

i%&re$&en& $n in-ol-een& in e ee/u&ion of o/uen&% "1 $n in f$-or of e $llege

$"u%er.8

A %on /$n "e$r =i eu$nii&1 e lo%% of #i% f$er "u& e lo%% of #i% in#eri&$n/e $1 ri-e

#i &o e%3$ir.*

Inee e-en e 3ro%3e/& of $ lo%% of in#eri&$n/e of&en ri-e% %on% $ug#&er% rel$&i-e% $n

frien% &o e%3er$&e e$%ure%. Con%ier e follo=ing %/en$rio: Bo" 3rior &o #i% e$ $& e $ge

of @( =$% $ "$/#elor =i %u"%&$n&i$l =e$l. He =$% %ur-i-e onl1 "1 #i% gre$&


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Si $l%o #el3e Bo" =i #i% fin$n/i$l $ff$ir% in/luing &$?ing #i &o $n $&&orne1 &o r$f& $

=ill. Si en/our$ge Bo" &o i%in#eri& #i% $n?le%% nie/e $n le$-e #i% one1 &o e 3eo3le

=#o /$re $"ou& #i. Af&er Bo"% e$ #i% =ill =$% re$ $n e en&ire&1 of Bo"% for&une =$%

lef& &o Si. Angel$ /on&e%&% e 3ro"$&e of e =ill "1 $lleging $& i& =$% e 3rou/& of unue

influen/e eer/i%e "1 Si.

T#e /on/e3& of unue influen/e in Aeri/$n l$= i% $ no&oriou%l1 iffi/ul& one $n $n1 $&&e3& &o

efine unue influen/e of&en egener$&e% in&o noing ore $n 3l$&i&ue% $"ou& %u"%&i&u&ing

one% -oli&ion for $noer $n gener$li&ie% /on/erning =#eer $ &e%&$&or i% %u%/e3&i"le &o $

?in of influen/e /on%iere unue "1 l$=. To full1 uner%&$n e e$ning of unue

influen/e i& i% ne/e%%$r1 &o e$ine i&% #i%&ori/$l "$%i%. E$rl1 o$n l$= i no& 3ro-ie for

/#$llenge% &o =ill% "$%e on unue influen/e fro oer%.)

3 "arius /. 0e aal, Comparative Succession Law, in #% O4O'0 #AN05OO6 O4 CO"&A'AI$% A 1781, 178 )"athias'eimann 9 'einhard immermann eds., 277;


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RESEARCH METHODOLO(

Rele1.nce 3f -5e -3@2c

Unue Influen/e i% $ -er1 -$%& $n i3or&$n& &o3i/ in L$= of Con&r$/&%. In 1our

/our&roo 1ou %oe&ie% %ee oer &13e% of /$%e% $& in-ol-e $ l$/? of u&u$l $%%en&.

Dure%% i% %oe&ie% /onfu%e =i undue 2nfluence. Unue influen/e i% $l%o $ efen%e

&o $ /on&r$/& $n i% $l%o $ %i&u$&ion $& $ffe/&% u&u$l $%%en&.

Unue influen/e i% &$?ing $-$n&$ge of $noer 3er%on roug# $ 3o%i&ion of &ru%& in e

for$&ion of $ /on&r$/&. Unue influen/e $l=$1% in-ol-e% $ rel$&ion%#i3 "e&=een e &=o

3$r&ie% =i one 3$r&1 in $ %u3erior 3o%i&ion o-er e oer. Unue influen/e oe%n&

in-ol-e $ ire/& re$& li?e ure%% oe%. In%&e$ i& in-ol-e% e/e%%i-e 3re%%ure "1 e

3$r&1 in e oin$n& 3o%i&ion on e 3$r&1 in e inferior 3o%i&ion.

I&% i3or&$n& &o no&e $& 3er%u$%ion $lone i% no& unue influen/e. In orer &o "e unue

influen/e e 3er%u$%ion u%& $oun& &o e/e%%i-e 3re%%ure $& $ffe/&% $ 3er%on%

freeo of /#oi/e.

O/=ec- 3f -5e s-ud8

Con&r$/&% u%& "e en&ere in&o freel1 "1 "o of e 3$r&ie% $n in/lue u&u$l $%%en&.

Soe&ie% u&u$l $%%en& /$n "e $ffe/&e "1 /oer/ion or 3re%%ure &o en&er e /on&r$/&.

Dure%% $n unue influen/e $re %i&u$&ion% $& $ffe/& u&u$l $%%en& $n $?e $ /on&r$/&

-oi or -oi$"le. T#e o"4e/& of e %&u1 i% &o uner%&$n e unue influen/e in /on&r$/&

for$&ion.

• Rese.0c5 ues-23ns


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>#$& i% Unue Influen/e

Ho= /$n unue influen/e $ffe/& $ /on&r$/&

• H8@3-5es2s

1. What is undue Influence?

T#e %/o3e of e o/&rine of unue influen/e #$% freuen&l1 "een i%uner%&oo. In

Mutual Finance Ltd. v. John Wetton & Sons Ltd. ,4 Por&er J. $f&er 3oin&ing ou& $& e

rig#& &o $-oi $ /on&r$/& i% no& $& e 3re%en& &ie /onfine &o /$%e% of ure%% re$r?%

$& i& e3en% on e u/# =ier relief gi-en on 3rin/i3le% origin$ll1 e-ol-e in e

C#$n/er1 Cour&% uner e n$e of unue influen/e. He goe% on &o %$1 $& ure%% $&

/oon l$= /oul onl1 "e 3le$e =#ere e en $rri-e $& =$% $/#ie-e "1 e u%e of

%oeing in e n$&ure of unl$=ful for/e or e re$& of unl$=ful for/e $g$in%& e

3er%on of e oer /on&r$/&ing 3$r&1. Unue influen/e in e C#$n/er1 Cour&% ig#& ei%&

=#ere $ 3roi%e =$% e&r$/&e "1 $ re$& &o 3ro%e/u&e /er&$in ir 3er%on% unle%% e

3roi%e% =ere gi-en.2

Me.n2n> 3f undue 2nfluence )& oin$&ing e =ill of e oer 3er%on &o o"&$in $n

unf$ir $-$n&$ge% o-er e oer%.

9.#ere e rel$&ion %u"%i%&ing "e&=een e 3$r&ie% u%& "e %u/# $& one 3$r&1 i% in

@3s2-23n -3 d32n.-e -5e ;2ll of e oer.

9/< T#e oin$n& 3$r&1 use #i% 3o%i&ion.

9c< O"&$in $n unf.20 .d1.n-.>e o-er e oer.

2. How can undue influence affect a contract?

id


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Unue influen/e $?e% $n $greeen& -oi$"le. T#e 3er%on unul1 influen/e /$n #$-e

e $greeen& %e& $%ie if #e $/&% in goo &ie $n oe% noing &o %#o= $& #e #$%

%u"%euen&l1 $ffire e $greeen&. Ag$in e $greeen& %#oul "e $-oie "efore

inno/en& ir 3$r&ie% "e/oe $ffe/&e or in-ol-e. >#en /on%en& &o $n $greeen& i%

/$u%e "1 unue influen/e e /on&r$/& i% -oi$"le $& e o3&ion of e 3$r&1 =#o%e /on%en&

=$% %o /$u%e.

Bu0den 3f P033f)& A /on&r$/& i% 3re%ue &o "e inu/e "1 unue influen/e if e follo=ing

&=o /oni&ion:<

8. A 3$r&1 #$% e 3o%i&ion &o oin$&e e =ill of e oer%

*. T#e &r$n%$/&ion i% un/on%/ion$"le 'unre$%on$"le+

In %u/# $ /$%e oin$n& 3$r&1 i% uner e "uren &o 3ro-e e unue influen/e =$% no&e3lo1e.

[nconsciona!le transactions"# if transaction appears to unreasonable the dominant party

to prove that there is no undue influence. ]

An8 3-5e0 -0.ns.c-23n)& =e$?er 3$r&1 &o 3ro-e e influen/e =$% e3lo1e

>#ere %oe &r$n%$/&ion i% en&ere in&o in e orin$r1 /our%e of "u%ine%% "u& ue &o /er&$in

/on&ingen/ie% one 3$r&1 i% $"le &o $?e e oer 3$r&1 $gree &o /er&$in &er% $n /oni&ion%

en i& i% no& unue influen/e.

E7.@le )

A $33lie% &o $ "$n?er for $ lo$n $& $ &ie =#en ere i% %&ringen/1 in e one1 $r?e&. T#e

"$n?er e/line% &o $?e e lo$n e/e3& $& $n unu%u$ll1 #ig# r$&e of in&ere%&. A $//e3&% e

lo$n on e%e &er%. T#i% i% $ &r$n%$/&ion in e orin$r1 /our%e of "u%ine%% $n e /on&r$/&

i% no& inu/e "1 unue influen/e.

E7.@le )

A %3iri&u$l guru inu/e #i% /#el$ &o on$&e $ll #i% 3ro3er&1 &o e $%#r$ $n %$i $& in

re&urn of i& #e =ill /er&$inl1 ge& %$l-$&ion. T#e /#el$ i e %$e. Hel $& i% i% $ /$%e of

unue influen/e %o i& "e/oe% -oi.


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LEAL ANAL(SIS

According to Indian Contract Act:

Section 16

Unue influen/e efine.K

'8+ A /on&r$/& i% %$i &o "e inu/e "1 unue influen/e =#ere e rel$&ion% %u"%i%&ing "e&=een

e 3$r&ie% $re %u/# $& one of e 3$r&ie% i% in $ 3o%i&ion &o oin$&e e =ill of e oer $n

u%e% $& 3o%i&ion &o o"&$in $n unf$ir $-$n&$ge o-er e oer. 886. Unue influen/e efine.

K'8+ A /on&r$/& i% %$i &o "e inu/e "1 unue influen/e =#ere e rel$&ion% %u"%i%&ing "e&=een e 3$r&ie% $re %u/# $& one of e 3$r&ie% i% in $ 3o%i&ion &o oin$&e e =ill of e

oer $n u%e% $& 3o%i&ion &o o"&$in $n unf$ir $-$n&$ge o-er e oer.

'*+ In 3$r&i/ul$r $n =iou& 3re4ui/e &o e gener$li&1 of e foregoing 3rin/i3le $ 3er%on i%

eee &o "e in $ 3o%i&ion &o oin$&e e =ill of $noerK

'$+ =#ere #e #ol% $ re$l or $33$ren& $uori&1 o-er e oer or =#ere #e %&$n% in $ fiu/i$r1

rel$&ion &o e oer or

'"+ =#ere #e $?e% $ /on&r$/& =i $ 3er%on =#o%e en&$l /$3$/i&1 i% &e3or$ril1 or

3er$nen&l1 $ffe/&e "1 re$%on of $ge illne%% or en&$l or "oil1 i%&re%%.

')+ >#ere $ 3er%on =#o i% in $ 3o%i&ion &o oin$&e e =ill of $noer en&er% in&o $ /on&r$/&

=i #i $n e &r$n%$/&ion $33e$r% on e f$/e of i& or on e e-ien/e $u/e &o "e

un/on%/ion$"le e "uren of 3ro-ing $& %u/# /on&r$/& =$% no& inu/e "1 unue influen/e

%#$ll "e u3on e 3er%on in $ 3o%i&ion &o oin$&e e =ill of e oer. Noing in e %u"<

%e/&ion %#$ll $ffe/& e 3ro-i%ion% of %e/&ion 888 of e Ini$n E-ien/e A/& 879* '8 of 879*+.

Illu%&r$&ion%

'$+ A #$-ing $-$n/e one1 &o #i% %on B uring #i% inori&1 u3on B% /oing of $ge o"&$in%

"1 i%u%e of 3$ren&$l influen/e $ "on fro B for $ gre$&er $oun& $n e %u ue in re%3e/&

of e $-$n/e. A e3lo1% unue influen/e. '$+ A #$-ing $-$n/e one1 &o #i% %on B uring

#i% inori&1 u3on B% /oing of $ge o"&$in% "1 i%u%e of 3$ren&$l influen/e $ "on fro B for

$ gre$&er $oun& $n e %u ue in re%3e/& of e $-$n/e. A e3lo1% unue influen/e.

https://indiankanoon.org/doc/1241481/https://indiankanoon.org/doc/474807/https://indiankanoon.org/doc/296490/https://indiankanoon.org/doc/1535724/https://indiankanoon.org/doc/130852/https://indiankanoon.org/doc/1359784/https://indiankanoon.org/doc/474807/https://indiankanoon.org/doc/296490/https://indiankanoon.org/doc/1535724/https://indiankanoon.org/doc/130852/https://indiankanoon.org/doc/1359784/https://indiankanoon.org/doc/1241481/


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'"+ A $ $n enfee"le "1 i%e$%e or $ge i% inu/e "1 B% influen/e o-er #i $% #i% ei/$l

$&&en$n& &o $gree &o 3$1 B $n unre$%on$"le %u for #i% 3rofe%%ion$l %er-i/e% B e3lo1e%

unue influen/e. '"+ A $ $n enfee"le "1 i%e$%e or $ge i% inu/e "1 B% influen/e o-er #i

$% #i% ei/$l $&&en$n& &o $gree &o 3$1 B $n unre$%on$"le %u for #i% 3rofe%%ion$l %er-i/e% B

e3lo1e% unue influen/e.

'/+ A "eing in e"& &o B e one1#ere #e #ol% $ re$l or $33$ren& $uori&1 o-er e oer.

Eg. M$%&er $n %er-$n& 3$ren& $n /#il In/oe T$ offi/er $n $%%e%%e% 3rin/i3$l $n $

Te3or$r1 Te$/#er.

"+ >#ere #e %&$n% in $ Tru%& fiu/i$r1 '"enefi&+ rel$&ion &o e oer.

Eg. Tru%&ee $n "enefi/i$r1 =i %3iri&u$l Guru $n #i% i%/i3le% %oli/i&or% $n /lien&%.

+ Men&$l C$3$/i&1 of $ 3er%on i% &e3or$ril1 or 3er$nen& effe/&e "1 re$%on of $ge

illne%% or en&$l or "oil1 i%&re%%.

https://indiankanoon.org/doc/140639/https://indiankanoon.org/doc/970822/https://indiankanoon.org/doc/1257309/https://indiankanoon.org/doc/140639/https://indiankanoon.org/doc/970822/https://indiankanoon.org/doc/1257309/


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Eg. el$&ion%#i3 "e&=een ei/$l $&&en$n& $n =$r.

T#e eui&$"le o/&rine of unue influen/e o3er$&e% &o rele$%e 3$r&ie% fro /on&r$/&% $& e1

#$-e en&ere in&o no& $% $ re%ul& of i3ro3er re$&% "u& $% $ re%ul& of "eing influen/e "1 e

oer 3$r&1 =#eer in&en&ion$ll1 or no&.

T#e 3re/i%e /on/e3& $1 "e ue for re/on%ier$&ion #o=e-er $& e 3re%en& ere $re $uori&ie%

=#i/# $re &re$&e $% "eing /on/erne =i unue influen/e.

In Willia%s v a'le'( for e$3le e /l$i$n& #$ $gree &o gi-e $ or&g$ge o-er #i% /ollier1

$% %e/uri&1 for e"&% in/urre "1 #i% %on =#o #$ forge #i% f$er% %ign$&ure on 3roi%%or1

no&e%. T#e /rei&or% #$ re$&ene $& e %on =oul "e 3ro%e/u&e if e or&g$ge =$% no&

gi-en. T#e $greeen& =$% %e& $%ie $% "eing o"&$ine "1 unue influen/e. T#i% /$%e in-ol-e

3re%%ure "eing 3l$/e on $ 3$r&1 in u/# e %$e =$1 $% o//ur% =i ure%%. I& i% 3o%%i"le $&

e e3$n%ion in e &13e of re$&% =#i/# $re no= &re$&e $% 3o&en&i$ll1 gi-ing ri%e &o ure%%

=oul e$n $& e1 =oul no= "e 3u& in $& /$&egor1.

One of e $in iffi/ul&ie% =i unue influen/e $% =i ure%% i% &o fin e lii&% of

legi&i$&e 3er%u$%ion. If i& =ere i3eri%%i"le &o %ee? &o 3er%u$e /$4ole or oer=i%e en/our$ge

3eo3le &o en&er in&o $greeen&% en %$le re3re%en&$&i-e% =oul $ll "e ou& of $ 4o".6

Influen/e in i&%elf i% 3erfe/&l1 $//e3&$"le: i& i% onl1 =#en i& "e/oe% unue $& e l$= =ill

in&er-ene. Cl$ri&1 in e/iing =#en $& #$% o//urre i% no& $%%i%&e "1 e f$/& $& e =or

unue #$% &=o 3o&en&i$l e$ning%. I& /$n "e u%e &o ini/$&e %oe i3ro3rie&1 on e 3$r& of

e influen/er.

T#e influen/e i% unue "e/$u%e $n i"$l$n/e of 3o=er "e&=een e 3$r&ie% #$% "een u%e

illegi&i$&el1 "1 e influen/er. Al&ern$&i-el1 e =or /$n "e u%e %i3l1 &o ini/$&e $& e

le-el of influen/e i% $& %u/# $ le-el $& e influen/e 3$r&1 #$% lo%& $u&ono1 in e/iing

=#eer &o en&er in&o $ /on&r$/&. T#i% oe% no& i3l1 $n1 ne/e%%$r1 i3ro3rie&1 on e 3$r& of e

influen/er.

; ?mith, ?, Contract heory )277.

http://www.inbrief.co.uk/contract-law/contracts.htmhttp://www.inbrief.co.uk/contract-law/contracts.htmhttp://www.inbrief.co.uk/contract-law/contracts.htm


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T#ere i% $n i%%ue in =#eer e /on/e3& i% /l$i$n&


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T#e Cour& of A33e$l in i% /$%e #el $& Mr%. A"oo1% /l$i &o %e& $%ie e &r$n%$/&ion

ne-erele%% f$ile "e/$u%e i& =$% no& &o #er $nife%& i%$-$n&$ge. T#e lo$n% =#i/# %#e =$%

gu$r$n&eeing #$ in f$/& gi-en e /o3$n1 $ re$%on$"l1 goo /#$n/e of %ur-i-ing in =#i/#

/$%e e 3o&en&i$l "enefi&% &o Mr%. A"oo1 =oul #$-e "een %u"%&$n&i$l.

T#e ri%?% in-ol-e i no& erefore /le$rl1 ou&=eig# e "enefi&%. T#e Hou%e of Lor% in

$I$ Mort+a+es ,lc v -itt %u"%euen&l1 ini/$&e #o=e-er $& $nife%& i%$-$n&$ge i% no&

$ reuireen& in /$%e% of $/&u$l $% o33o%e &o 3re%ue unue influen/e. If %iil$r f$/&% =ere

&o re/ur erefore $ 3er%on in e 3o%i&ion of Mr% A"oo1 =oul "e li?el1 &o %u//ee in #$-ing

e &r$n%$/&ion% %e& $%ie.

>#ere $/&u$l unue influen/e i% 3ro-e i& i% no& ne/e%%$r1 for e /l$i$n& &o 3ro-e $& e

&r$n%$/&ion =oul no& #$-e "een en&ere in&o "u& for e i3ro3er influen/e. T#i% =$% e -ie=of e Cour& of A33e$l in $ $or,orate Services Ltd v Willia%s. T#e 3o%i&ion i% $n$logou% &o

$& $33l1ing &o i%re3re%en&$&ion or ure%%: $% long $% e influen/e =$% $ f$/&or in $?ing e

e/i%ion &o en&er in&o e &r$n%$/&ion $& i% %uffi/ien&.

Undue 2nfluence .8 /e c.-e>302ed .s f3ll3;s)

$+ A/&u$l unue influen/e. T#e /l$i$n& u%& e%&$"li%# $& e efen$n& u%e unue

influen/e in rel$&ion &o 3$r&i/ul$r &r$n%$/&ion. T#ere oe% no& nee &o "e $n1 3re-iou%

#i%&or1 of %u/# influen/e $loug# ere i% nor$ll1 %oe rel$&ion%#i3 "e&=een e

3$r&ie% %u/# $% #u%"$n $n =ife.

"+ '$+ S3e/i$l rel$&ion%#i3. T#i% /$&egor1 $33lie% &o /er&$in e%&$"li%#e %3e/i$l fiu/i$r1

rel$&ion%#i3%: 3$ren& $n /#il gu$ri$n $n =$r religiou% $-i%or $n i%/i3le

%oli/i&or $n /lien& $n &ru%&ee $n "enefi/i$r1 '"u& no& #u%"$n $n =ife+. Su/# $

%3e/i$l rel$&ion%#i3 gi-e% ri%e &o $ 3re%u3&ion of influen/e onl1 "u& no& unue

influen/e. If e &r$n%$/&ion in ue%&ion i% %u%3i/iou% i.e. i& /$ll% for $n e3l$n$&ion

en $ %e/on e-ien&i$l 3re%u3&ion of unue influen/e =ill $ri%e. T#i% %e/on

3re%u3&ion unli?e e fir%& i% re"u&&$"le.


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'"+ No %3e/i$l rel$&ion%#i3. T#i% /$&egor1 /o-er% /$%e% =#ere ere i% no %3e/i$l

rel$&ion%#i3 $% e3l$ine $"o-e "u& e rel$&ion%#i3 i% ne-erele%% one of &ru%& $n

/onfien/e =#ere one 3$r&1 i% in $ 3o%i&ion &o eer& unue influen/e o-er e oer.

Follo=ing trid+e ere i% no longer $n1 3re%u3&ion of unue influen/e in %u/# /$%e%.

T#e /l$i$n& u%& %#o= e1 3l$/e &ru%& $n /onfien/e in e efen$n& on/e $& i%

e%&$"li%#e en =#ere ere i% $ &r$n%$/&ion /$lling for $n e3l$n$&ion $n e-ien&i$l

3re%u3&ion $& ere #$% "een unue influen/e =ill $ri%e. I& =ill "e for e efen$n& &o

3ro-e $& no %u/# influen/e =$% eer/i%e.

T#u% $n inferen/e of unue influen/e $1 $l%o $33l1 e-en if e rel$&ion%#i3 i% no& =iin one of

e %3e/i$l rel$&ion%#i3% "u& one 3$r&1 "1 re$%on of e /onfien/e re3o%e in #i or #er "1 e

oer =e$?er 3$r&1 i% $"le &o &$?e unf$ir $-$n&$ge.

For e$3le 2n Llo'ds an/ Ltd v und'! CA! $% $n elerl1 f$rer g$-e e B$n? $

gu$r$n&ee in re%3e/& of #i% %on% o-err$f& $n or&g$ge e f$r#ou%e &o e B$n? $% %e/uri&1.

I& =$% /le$r $& e f$rer #$ 3l$/e #i%elf en&irel1 in e #$n% of e $%%i%&$n& "$n?

$n$ger $n #$ "een gi-en no o33or&uni&1 &o %ee? ine3enen& $-i/e. Aloug# nor$ll1 e

3re%u3&ion of unue influen/e =oul no& $33l1 "e&=een "$n? $n /u%&oer e Cour& of

A33e$l #el $& i& i %o #ere $n e &r$n%$/&ion =$% %e& $%ie.

I& =$% l$&er #el "1 e Hou%e of Lor% in 0ational West%inster an/ -lc v Mor+an HL 8@72

$& e &r$n%$/&ion =oul onl1 "e $-oie in %u/# /$%e% =#ere e &r$n%$/&ion i&%elf =$%

$nife%&l1 i%$-$n&$geou% &o e =e$?er 3$r&1. Ho=e-er in e trid+e /$%e eir Lor%#i3%

/on%iere $& e l$"el $nife%& i%$-$n&$ge %#oul "e $"$none in f$-our of $ &e%& of

=#eer e &r$n%$/&ion /$ll% for $n e3l$n$&ion u% $o3&ing e i/&u of Linle1 J.

in )llcard v S/inner 8779: i.e. i% e &r$n%$/&ion %u/# $% no& &o "e re$%on$"l1 $//oun&e for on

e groun of frien%#i3 rel$&ion%#i3 /#$ri&1 or oer orin$r1 o&i-e% on =#i/# orin$r1 en

$/&


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T#e e-ien&i$l 3re%u3&ion of unue influen/e $1 "e re"u&&e "1 e "enefi/i$r1 of e

&r$n%$/&ion %#o=ing $& e oer 3$r&1 eer/i%e ine3enen& free =ill. T#i% i% nor$ll1 one

"1 3ro-ing $& e oer 3$r&1 re/ei-e /o3e&en& ine3enen& $-i/e. Ho=e-er in

e Etridge /$%e e Hou%e of Lor% ini/$&e $& e ei%&en/e of ine3enen& $-i/e $1 no&

"e /on/lu%i-e.

In Llo'ds an/ v und' Lor Denning M.. #$ %oug#& &o e%&$"li%# $ o/&rine =#ere"1 $ll e

in%&$n/e% =#ere e /our&% in&er-ene &o %e& $%ie un/on%/ion$"le &r$n%$/&ion% $re "$%e on $

%ingle unif1ing 3rin/i3le n$el1 ineu$li&1 of "$rg$ining 3o=er. In 0ational West%inster

an/ v Mor+an e Hou%e of Lor% refu%e &o $//e3& %u/# $ =ie 3rin/i3le. Lor S/$r$n %$i

T#ere i% no 3re/i%el1 efine l$= %e&&ing lii&% &o e eui&$"le 4uri%i/&ion of $ /our& &o relie-e

$g$in%& unue influen/e.


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ROLE OF JUDICIAR(

Uner%&$ning unue influen/e i%%e/&ing i& efining i& $n uner%&$ning e &er #$%

3ro-en elu%i-e in %o/i$l %er-i/e $n leg$l %e&&ing%. Soe 3eo3le #$-e %$i I ?no= i&

=#en I %ee i& $?ing e &er $ $&&er of 3er%on$l in&er3re&$&ion. Soe %&$&e 3ro"$&e

l$=% referen/e e &er $n $ fe= %&$&e% #$-e efini&ion% $& /$n "e %u$rie $%:

Unue influen/e o//ur% =#en $ fiu/i$r1 or /onfien&i$l rel$&ion%#i3 ei%&% in =#i/# one

3er%on %u"%&i&u&e% #i% o=n =ill for $& of e influen/e 3er%on% =ill. Oer %&$&e% #$-e

efini&ion% in /riin$l or oer /oe%. Of /our%e 4ui/i$l e/i%ion% on ini-iu$l /$%e%

ei%& "u& e1 $re u%u$ll1 ?no=n onl1 in leg$l /ir/le%.@

Mo%& unue influen/e /$%e% $re %een in 3ro"$&e /our&% =i 3e&i&ion% for gu$ri$n%#i3%

/on%er-$&or%#i3% $n =i i%3u&e =ill% $n &ru%&%. Unue influen/e %i&u$&ion% $re $l%o

%een in /on&r$/& l$= =i o/uen&% %u/# $% ee% 3o=er% of $&&orne1 $n /on&r$/&%. I&

$1 $l%o "e 3re%en& in %oe /riin$l /$%e%. In $ll o%e %i&u$&ion% /our&% /on%ier

e-ien/e ini/$&ing $& unue influen/e $1 or $1 no& #$-e $lre$1 #$33ene.

>i e eergen/e of eler $"u%e $n $n$&or1 re3or&ing of eler $"u%e o-er e l$%&

ree e/$e% /ouni&1 3r$/&i&ioner% %u/# $% Aul& Pro&e/&i-e Ser-i/e% %&$ff #o%3i&$l

i%/#$rge 3l$nner% 3#1%i/i$n% $n 3u"li/ #e$l nur%e% =#o =or? ire/&l1 =i eler%

#$-e ien&ifie %i&u$&ion% =#ere i& %ee% $& unue influen/e i% /urren&l1 &$?ing 3l$/e.

Couni&1 3rofe%%ion$l% en/oun&er /ir/u%&$n/e% =#ere e1 "elie-e i& i% #$33ening

=#ere f$ilie% feel #el3le%% &o in&er-ene $n =#ere eler% $re lef& 3ennile%% "1 %/$%

%oe&ie% "1 lo&&er1 %/$% ini&i$&e in oer /oun&rie%.

T#e i%%ue i% 3$r&i/ul$rl1 i3or&$n& "e/$u%e e nu"er of 3eo3le o-er 62 i% in/re$%ing

n$&ion=ie.

Defini&ion% of unue influen/e #$-e "een iffi/ul& &o legi%l$&e for $n1 re$%on%. Unue

influen/e u%u$ll1 &$?e% 3l$/e "e#in /lo%e oor% $n ere $re no =i&ne%%e%. An $ul&%

$re leg$ll1 $"le &o $?e e/i%ion% $"ou& eir $ff$ir% unle%% $ /our& #$% $33oin&e $

gu$ri$n or /on%er-$&or. For in%&$n/e $n eler =#o i% unul1 influen/e #$% e leg$l

( Chitty on Contracts, )2(th ed 277.


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rig#& &o %3en #i% one1 on &ele$r?e&er% e-en oug# i& $1 4eo3$rie #i% $%%e&%.

Co3li/$&ing e $&&er i% $& unue influen/e i% of&en lin?e &o i3$ire /ogni&i-e

/$3$/i&1 e-en oug# i& freuen&l1 o//ur% =#en e eler /le$rl1 #$% /$3$/i&1.

Co3li/$&ing e $&&er e-en furer unue influen/e i% 3re%en& in $n1 oer /ir/u%&$n/e% %u/# $% #o%&$ge %i&u$&ion% f$ilie% &ele$r?e&er% oe%&i/ -iolen/e

3ri%oner% of =$r /ul&% $n =#i&e /oll$r /rie. I& /oul e-en $33l1 &o &o&$li&$ri$n regie%

$& $/& &o /on&rol 3o3ul$&ion% %in/e e eleen&% $re %iil$r. Su/# $ -$rie&1 of /o3le

/ir/u%&$n/e% =i -$r1ing le-el% of in&en%i&1 #$-e $e i& iffi/ul& &o forul$&e $n

o-er$r/#ing efini&ion of unue influen/e.

ndue Influence $ase

A petition was filed for the ublic !uardian to be appointed the guardian of person and

estate for "s. #. $he %estern &nion office had contacted Adult rotective Services with

concerns about the amount of money "s. #. was wiring to another country. 'er sister in

(anada received notice of the petition and was certain that "s. #. was being

)railroaded* into a guardianship. She immediately came to visit "s. #. and observed her

spea+ing on the phone in a secretive manner several times a day. "s. #. would not tell

her sister who the caller was or what the call was about.

ater it was learned that "s. #. was tal+ing to her )dear friend* who lived in a different

country and who was going to ma+e certain that "s. #. received a million dollars if only

she would send more money now-it was a amaican lottery scheme. "s. #. thought she

was ma+ing investments. $he sister became convinced that "s. #. needed the

guardianship because she could not be tal+ed out of spea+ing with her )dear friend* and

sending the money. She was on the way to impoverishing herself.

$he court appointed a public guardian to serve as guardian of person and estate.


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>i i% ne= %&$&u&or1 efini&ion of unue influen/e /our&% $&&orne1% $n /ouni&1

3r$/&i&ioner% #$-e guieline% &o $%%i%& e in e&erining if unue influen/e #$%

o//urre or i% o//urring. T#e efini&ion =$% 3ur3o%efull1 =ri&&en in l$1 &er% %o

/ouni&1 3r$/&i&ioner% /$n u&ilie i& ore e$%il1. Sin/e %3e/ifi/ e$3le% of e-ien/e

$re in/lue unue influen/e $1 "e ore e$%il1 e&e/&e.

I3leen&$&ion of e ne= efini&ion =#ere e ru""er #i&% e ro$ re$in% &o "e

%een. Eu/$&ion $n &r$ining =ill "e neee for e -$riou% 3rofe%%ion$l% =#o en/oun&er

unue influen/e. A&&orne1% =ill li?el1 "egin in/luing e efini&ion in eir 3e&i&ion% for

/on%er-$&or%#i3 =ill% $n &ru%&%. Cour&% =ill en /on%ier if unue influen/e #$% &$?en

3l$/e $n if e e/i%ion i% $& i& #$% o//urre =ill refle/& $& fining in /our& ruling%

$n o3inion%.

Couni&1 3r$/&i&ioner% $1 "e&&er $"le &o $r&i/ul$&e =#$& unue influen/e e$n% $n &o

e%/ri"e e %3e/ifi/ /ir/u%&$n/e% in ini-iu$l /$%e%. T#e ne= l$= re3re%en&% $ %e$

/#$nge in efining unue influen/e. Tie =ill &ell #o= e efini&ion =ill "e

i3leen&e.


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COMPARITIVE STUD(

ndue Influence and $oersion

GC3e0c23n’ i% e $/& of re$&ening $ 3er%on in orer &o /o3el #i &o en&er in&o e

/on&r$/&. GUndue Influence’ i% $n $/& of influen/ing e =ill of e oer 3$r&1 ue &o #i%

oin$n& 3o%i&ion.

Coer/ion i% $ 3r$/&i/e of unl$=full1 in&ii$&ing $ 3er%on or 3ro3er&1 e3lo1e &o inu/e $

3er%on &o en&er in&o $n $greeen& =iou& #i% ine3enen& =ill. T#i% in-ol-e% 3#1%i/$l 3re%%ure.

I& i% $n $/& of /o3elling $ 3er%on in %u/# $ $nner $& #e oe%n& #$-e $n1 /#oi/e r$er $n

en&ering in&o $n $greeen& =i e oer 3$r&1.

Coer/ion in/lue% "l$/?$iling re$&ening &o ?ill or "e$& $n1 3er%on &or&ure #$ring e

f$il1 of $ 3er%on e&$ining 3ro3er&1. Moreo-er i& in/lue% e $/&u$ll1 /oi&&ing or

re$&ening &o /oi& $n offen/e =#i/# i% %&ri/&l1 3ro#i"i&e or for"ien "1 e Ini$n Pen$l

Coe 'IPC+ 876(. T#e $/&% influen/e "1 /oer/ion $re -oi$"le no& -oi i.e. if e oer 3$r&1

=#o%e =ill i% influen/e "1 /oer/ion %ee% $n1 "enefi& in e /on&r$/& en i& /$n "e

enfor/e$"le.

E7.@le) A re$&en% B &o $rr1 #i or el%e #e =ill ?ill #er =#ole f$il1. In i% %i&u$&ion e

/on%en& of B i% no& free i.e. i& i% influen/e "1 /oer/ion.

Unue Influen/e i% $ %i&u$&ion in =#i/# one 3er%on influen/e% e free =ill of $noer 3er%on "1

u%ing #i% 3o%i&ion $n $uori&1 o-er e oer 3er%on =#i/# for/e% e oer 3er%on &o en&er in&o

$n $greeen&. Men&$l 3re%%ure $n or$l for/e $re in-ol-e in i&.


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T#e 3$r&ie% &o e /on&r$/& $re in fiu/i$r1 rel$&ion &o e$/# oer li?e $ $%&er ; %er-$n& &e$/#er ;

%&uen& &ru%&ee ; "enefi/i$r1 o/&or ; 3$&ien& 3$ren& ; /#il %oli/i&or ; /lien& e3lo1er ;

e3lo1ee e&/. T#e oin$n& 3$r&1 &rie% &o 3er%u$e e e/i%ion% of e =e$?er 3$r&1 in orer &o

&$?e ineui&$"le $-$n&$ge of #i% 3o%i&ion. T#e /on&r$/& "e&=een e 3$r&ie% i% -oi$"le i.e. e

=e$?er 3$r&1 /$n enfor/e i& if #e %ee% %oe "enefi& in i&.

E7.@le) A &e$/#er for/e% #i% %&uen& &o %ell #i% "r$n ne= =$&/# in $ -er1 noin$l 3ri/e in

orer &o ge& goo gr$e% in e e$in$&ion. In i% %i&u$&ion e /on%en& of e %&uen& i%

$ffe/&e "1 e unue influen/e.

e' ifferences !etween $oercion and ndue Influence

T#e $4or ifferen/e% "e&=een /oer/ion $n unue influen/e $re $% uner:

8. T#e $/& of re$&ening $ 3er%on in orer &o inu/e #i &o en&er in&o $n $greeen& i%

?no=n $% /oer/ion. T#e $/& of 3er%u$ing e free =ill of $noer 3er%on "1 &$?ing

$-$n&$ge of 3o%i&ion o-er e =e$?er 3$r&1 i% ?no=n $% unue influen/e.

*. Coer/ion i% efine in %e/&ion 82 =#ile Unue Influen/e i% efine in %e/&ion 86 of e

Ini$n /on&r$/& A/& 879*.

). An1 "enefi& re/ei-e uner /oer/ion i% &o "e re%&ore "$/? &o e oer 3$r&1. Con-er%el1

$n1 "enefi& re/ei-e uner unue influen/e i% &o "e re&urne "$/? &o e 3$r&1 $% 3er e

ire/&ion% gi-en "1 e /our&.

0. T#e 3$r&1 =#o e3lo1% /oer/ion i% /riin$ll1 li$"le uner IPC. On e oer #$n e

3$r&1 =#o eer/i%e% unue influen/e i% no& /riin$ll1 li$"le uner IPC.

2. Coer/ion in-ol-e% 3#1%i/$l for/e =#ere$% Unue Influen/e in-ol-e% en&$l 3re%%ure.


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6. T#e 3$r&ie% uner /oer/ion nee no& &o "e in $n1 rel$&ion%#i3 =i e$/# oer. A% o33o%e

&o unue influen/e e 3$r&ie% u%& "e in $ fiu/i$r1 rel$&ion%#i3 =i e$/# oer.

CONCLUSION

I& i% /on/lue $& ure%% /$n $n %#oul "e erge =i $/&u$l unue influen/e. T#e

r$nge of 3re%%ure =#i/# ure%% #$% e3$ne &o in/lue #$% re%ul&e in $n e&en%i-e

o-erl$3 "e&=een e &=o o/&rine%. Unue influen/e %#oul %u"%ue ure%% "e/$u%e i& i%

$ =ier o/&rine $n "e&&er eui33e &o e$l =i l$=ful 3re%%ure %i&u$&ion%. An1 f$/&u$l

%i&u$&ion% $& /$nno& "e e$l& =i u%ing unue influen/e /$n "e e$l& =i u&iliing un<

/on%/ion$"ili&1. T#erefore gi-en e re/en& e-elo3en&% of e ree o/&rine% i& i%

ure%% $& i% e %u3erfluou% o/&rine. Ho=e-er i& i% %u"i&&e $& unue influen/e $n

un#ile ere i% $

%u"%&$n&i$l o-erl$3 "e&=een unue influen/e $n un

Undue Influence in a Contract

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