Main Components of Contract Law - Assignment Example

Presumed undue influence is a class of undue influence whereby a relationship of trust and confidence amongst the transferor and transferee evokes a rebuttable precondition that the transfer was due to undue influence.Ward in para 31 of Daniel v Drew2 differentiated the two classes of undue influence as: “In the broadest possible way, the difference between the two classes is that in the case of actual undue influence something has to be done to twist the mind of a donor whereas in cases of presumed undue influence it is more a case of what has not been done namely ensuring that independent advice is available to the donor”Duress is actually a concept in common law whereas undue influence arises in equity.

It can also be said that duress is the result of a specific threat which is made on a particular occasion. But undue influence develops from a progressing relationship. In undue influence, the past between the two parties is as important as the event which surrounds the development of a particular disputed contract (Stone, 2005, Pp.123-126).Yet another difference lies in the position of the benefited parties in the contract. Under duress, it becomes clear that he/she has acted improperly.3 Also in the case of duress, the contract may not result to be disadvantageous to the person who persuaded for such a contract.

On the other hand, in the case of undue influence, the unfair transaction is a prerequisite for a productive plea (Stone, 2005, Pp.123-126)