Difference between undue influence and misrepresentation. Foundations of Law 2022-10-05
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Undue influence and misrepresentation are two distinct legal concepts that can arise in the context of contract law. Both concepts involve one party exerting some form of influence or control over the other party, but they differ in the specific manner in which this influence is exercised and the legal consequences that may result.
Undue influence refers to a situation in which one party uses their power or authority over another party to coerce or persuade them into entering into an agreement that is not in their best interests. This can take many forms, such as using psychological manipulation, physical coercion, or exploiting a vulnerable or dependent relationship. The key element of undue influence is that the influenced party is not acting freely and voluntarily, but rather is being forced or manipulated into making a decision that they would not otherwise have made.
Misrepresentation, on the other hand, refers to a situation in which one party makes a false or misleading statement to another party, with the intent of inducing them to enter into an agreement. This can take the form of a direct lie, or it can involve withholding important information or making misleading statements. The key element of misrepresentation is that the statement is false or misleading, and that the party making the statement knows or should have known that it was false or misleading.
The legal consequences of undue influence and misrepresentation can vary depending on the specific circumstances of the case. In general, a contract that has been procured through undue influence may be deemed voidable, meaning that the influenced party has the option to cancel the contract and seek damages or other remedies. A contract procured through misrepresentation, on the other hand, may be deemed void, meaning that it is not enforceable at all.
In summary, undue influence and misrepresentation are two distinct legal concepts that can arise in the context of contract law. Undue influence refers to a situation in which one party uses their power or authority to coerce or persuade another party into entering into an agreement that is not in their best interests, while misrepresentation refers to a situation in which one party makes a false or misleading statement to another party in order to induce them to enter into an agreement. Both concepts can have significant legal consequences, and it is important for parties to be aware of these issues in order to protect their rights and interests.
The impact of misrepresentation, mistake, duress and undue influence on the validity of a contract
Most common cases of undue influence involve the elderly at nursing homes and professional self-dealing when there is a fiduciary duty. Active concealment has also been considered to be equivalent to a statement because in that case, there is a positive effort to conceal the truth and create untrue tors impression on the mind of the other. Do I need a duress or undue influence attorney near me? This was a significant decision as it illustrated that undue influence will depend entirely upon the circumstances of the case Adkinson, 2008: 7341. In this instance, the court would find the contract voidable and it would be up to Emily to prove that Amelia freely added her to the will out of her own free will. However, the owner is unaware of the problem.
The right is lost if third parties acting in good faith acquire rights in the subject matter of the contract before the right to rescind is exercised 3. The essence of a contract is agreement, i. The amount of maintenance payable was written in words and figures in hands of husband. Although the misrepresentation that the owner made was not fraudulent because he himself was unaware of the termite problem , it was still a material misrepresentation that Karl relied on. Undue influence is one of the biggest risks during contract formation and negotiation, yet few know what undue influence is, or how to identify it. What is an example of duress in wills and trusts? Elements of Duress There are four elements of duress that can be proven to show that the dominant party caused harm. Commanding officer and soldier in the army Relationships between a soldier and an army officer are treated as relationships of trust and confidence.
Karl contacts John, a realtor, and arranges to see several houses that are on sale. It turns out that, before the day of the bargain, the ship conveying the cargo ha and the goods lost. Undue Influence is an act of influencing the will of the other party. Mental pressure and moral force are involved in it. She was held not a pardanashin woman. The influencer can use a number of tactics to utilize their power over another. It has been extracted under duress or.
Solicitor — client, doctor — patient, spiritual guru — devotee. . Accordingly, where there type of mistake occurs the parties must be able to show that they were both mistaken in relation to the particular fact or law, and that it was an integral part of the contract, which again induced them to enter into it. Criminal Nature Yes No Relationship The relationship between parties is not necessary. Contesting a Trust: How Will My Family React? What are the limitations to recission? She has advised on a wide range of corporate and commercial matters including drafting, reviewing and negotiating a variety of commercial contracts and other agreements across various business lines.
Difference Between Coercion and Undue Influence (with Examples and Comparison Chart)
The purported influencer must fulfil certain criteria: 1. They agree that David will buy Manny's part of the business and the land. Though at times the distinction between these two terms becomes blurred, this article is meant to highlight the differences between duress and undue influence to help people understand how and why they are used in a court of law. In this meeting, the extent of liability and the risks involved in acting as a guarantee or mortgagor should be touched upon. Undue influence is an equitable doctrine in contract law that refers to circumstances in which an individual with more power places improper pressure on the weaker party to induce them into entering a contract against their will. Affirmation Where the victim elects to continue with the agreement despite the undue influence 2.
Coercion, Undue Influence, Fraud, and Misrepresentation
Williams vs Baylex 1866— father being afraid of bank manager, entered into a contract to mortgage his house. That is why the contract is voidable at the option of the party whose will is influenced by the other party. A finding of undue influence can occur in any relationship, so long as the key legal requirements are present. Where the following special relationships exist:. Generally, however, the more lop-sided or unequal the transaction, the better the explanation must be before the presumption can be rebutted successfully. Sections It is governed by Section 15 of the Indian Contract Act, 1872. The party who makes the representation must intend for the other party to act upon such representation 5.
Casebook on Contract Law, 8th Edition, OUP Oxford. However, it did not say that company was making losses and dividends were being paid from war time accumulated profits. Duress is a defence under the common law and is concerned largely with threatening behaviour. The right to rescind is lost if the party entitled to rescind affirms the contract after becoming aware of the falsity of the representation 2. The victim must be susceptible to the manipulations of the other party. There may be no consensus ad idem i. As opposed to undue influence, the parties must be in a fiduciary relationship with each other.
Example of duress to goods: Jackson lets his roommate, Amanda, borrow his car to get to work. However, if the consent is obtained by misrepresentation of a fact or silence amounting to fraud, the contract is not voidable if the party whose consent was so caused was able to discover it with due diligence. An important way to rebut undue influence presumes to show that independent advice was taken by the other party out of their own free will. Undue influence can also work to induce a person to enter a contract with someone other than the purported influencer. The offer acceptance do not coincide and thus no genuine agreement is constituted between the parties.
After the contract is signed, Karl finds out about the termite problem. If duress or undue influence has occurred, then the contract may be rendered voidable and thereby capable of being cancelled. Introduction Contract law is primarily concerned with the enforcement of promises and is regulated largely by the common law. Section 14 says that consent is free when it is not vitiated by coercion, undue influence, fraud, misrepresentation, or mistake subject to sections 20, 21, 22. In this situation, the consent of the student is affected by the undue influence. Specifically, it is most common when it comes to mortgages and guarantees. Evidence of these four elements are equally important in proving undue influence has occurred.
The #1 Difference Between Undue Influence and Duress
Undue influence can be exercised to induce the giving of a gift to another. According to the League rules, at 12:00 A. The main difference between duress and undue influence is whether or not there is a direct threat versus excessive misuse of power. The husband then defaults on loan repayments, which results in the wife claiming that the agreement should be rescinded for undue influence. The purported victim should also be urged to take separate legal advice if possible. The contract between Manny and David demonstrates mutual assent, in which both parties are happily entering the agreement and no one is taking advantage of the other.
