Taking advantage - how does undue influence affect contracts

The legal principle of undue influence provides that a contract may be set aside or at least voidable in favour of the purported 'weaker party', should the agreement have arisen from a relationship of influence between the parties. Not all such transactions are remediable, but where established, the 'weaker party' will have the option to rescind the contract.

The doctrine is applicable to the following two categories:

Actual Undue Influence:

It arises where, in regard to a gift or contract, it is proven that the 'dominant party' exerted influence over the 'weaker party' to induce the giving of the gift or entry into the contract.

Presumed Undue Influence:

Where a relationship of influence is presumed. Whilst the list is not exhaustive, such relationships include: