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The Legal Implications of Undue Influence in Contract Law

Young lady being forced to sign a contract. This is an example of undue influence in contract law.

Undue influence is a legal concept that refers to a situation where one party in a contract exerts an unfair amount of pressure or influence over the other party, leading them to agree to terms that are not in their best interest. In this guide, we’ll explore the different types of undue influence, how it can be proven in court, and what remedies are available for victims of undue influence in contract law.

Understanding the Definition of Undue Influence.

Undue influence is a legal term used to describe a situation where one party in a contract exerts an excessive amount of pressure or influence over the other party, leading them to agree to terms that are not in their best interest. This can occur in a variety of contexts, including business transactions, real estate deals, and even personal relationships. Undue influence in contract law is a defense that can be used by a party to argue against the formation of a binding contract between two parties.

In order to prove undue influence in court, it must be shown that the victim was vulnerable to the influence of the other party and that the other party took advantage of this vulnerability to gain an unfair advantage.

Recognizing Signs of Undue Influence in Contracts.

It can be difficult to recognize signs of undue influence in contracts, as it often occurs behind closed doors and without the knowledge of others. However, some common signs include a sudden change in behavior or decision-making by the victim, a lack of independent legal advice, and a significant power imbalance between the parties involved. If you suspect that undue influence may have played a role in a contract, it’s important to seek legal advice as soon as possible.

Remedies for Undue Influence in Contract Law.

If a contract is found to be the result of undue influence, there are several remedies available. The contract may be voidable, meaning that the victim can choose to either enforce or rescind the contract. Alternatively, the contract may be declared void ab initio, meaning that it is treated as if it never existed. In some cases, the victim may also be entitled to damages for any losses suffered as a result of the undue influence. It’s important to seek legal advice to determine the best course of action in your specific situation.

How to Unwind a Contract Based on Undue Influence.

If you believe that you have been the victim of undue influence in a contract, it may be possible to unwind the contract. This means that the contract will be declared void and unenforceable, and any money or assets that have been transferred as a result of the contract will be returned to their original owner. However, unwinding a contract based on undue influence can be a complex and difficult process, and it is important to seek legal advice from a qualified attorney who specializes in contract law. Your attorney can help you gather evidence, build a case, and navigate the legal system to ensure that your rights are protected.

Do you have a case involving undue influence in contract law? Call us today!

If you or a loved one believe that you have been a victim of undue influence in a contract, it’s important to take action to protect your legal rights. Contact our experienced legal team today to schedule a consultation and discuss your legal options. We have a deep understanding of the legal implications of undue influence in contract law and can provide you with the guidance and advocacy you need to protect your interests. Don’t wait – call us today at 602-443-4888 to learn more.

 

ABOUT THE AUTHOR

Founding attorney Paul Deloughery has been an attorney since 1998, became a Certified Family Wealth Advisor. He is also the founder of Sudden Wealth Protection Law.

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