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Constituent Parts of the Law on Contracts - Article Example

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The paper "Constituent Parts of the Law on Contracts" describes that Undue influence occurs in cases wherein the relationship between two persons, one has obtained a considerable measure of influence, or dominance, over the other, of which the dominant person subsequently takes undue advantage…
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Constituent Parts of the Law on Contracts
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Download file to see previous pages There is a high likelihood of the exercise of undue influence in certain relationships wherein one person holds a substantial position of trust and/or authority over the other and has adequate control to influence the decision of others, such as the relationship between parent and child, doctor and patient, teacher and student, lawyer and client, husband and wife etc. Undue influence is alleged to be implemented or used in case of lack of adequate substantiation to the contrary, and hence it is customary for the third parties involved in such a transaction to advise their customers, clients to request autonomous legal counsel prior to entering into an agreement at the behest of the person who is deemed to be in an influential position owing to their particular relationship.
Actual undue influence refers to a situation whereby one of the parties to the contract enters into a transaction owing to the inappropriate exercise of influence by the other party. To institute the existence and exercise of actual undue influence the party desiring to set aside the contract must establish that:
While presumed undue influence, on the other hand, refers to incidences where one of the parties to a contract was influenced into entering into a contract by the other party and where there is a relationship of trust and confidence between both the parties to the contract. Such contracts may be set aside by the aggrieved party after they have adequately and effectively established that:
In cases involving presumed undue influence, the court of law presumes the existence of a relationship of trust and confidence if the parties to the contract comprise of teacher and student, solicitor and client, doctor and patient, etc. ...Download file to see next pagesRead More
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