What is Considered The Basis of Undue Influence?
Undue influence (as a term in jurisprudence) is an equitable doctrine that involves one person taking advantage of a position of power over another person. It is where free will to bargain is not possible says California Business Lawyer Steven C. Peck.
Undue influence in contract law:
If undue influence is proved in a contract, in U.S. law, the contract is voidable by the innocent party, and the remedy is rescission. There are two categories to consider:
Actual undue influence:
An innocent party may also seek to have a contract set aside for actual undue influence, where there is no presumption of undue influence, but there is evidence that the power was unbalanced at the time of the signing of the contract.
Undue influence in probate law:
“Undue influence” is the most common ground for will contests and are often accompanied by a capacity challenge. In probate law, it is generally defined as a testator’s loss of free agency regarding property disposition through contemporaneous psychological domination by an advisor which results in an excessive benefit to the advisor. It is important to note that “undue influence” is only an issue when the advisor is benefiting, not when advisor is getting a benefit for someone else; in that case it would be considered fraud. In litigation most jurisdictions place the burden of proving undue influence on the party challenging the will.
Questions? Check with Peck Today
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