Undue Influence Part 1

            Undue influence can be simply described as about a person who take advantage in his special position to deceive another party in a contract. According to the section 10 (1) of the Contract Act (CA) it stated that all parties must enter into an agreement by free consent. However, section 14 (b) said that consent is said to be free when it is not caused by undue influence as stated under section 16 of the same act. This section stated that undue influence is a relation of a party who is in his special position to dominate another party to obtain an unfair advantage in a contract.

According to common law, there are two types of undue influence which are actual and presumed undue influence. Basically, both types have a big similarity in their meaning which when the wrongdoer in his dominant position, and the transaction done was unfair, then it can be said that undue influence to be occurred. The different is a plaintiff does not need to prove the wrongdoer is in his dominant position regards to actual undue influence, but plaintiff need to prove the element of trust to raise undue influence.
For your better understanding, we may refer to section 16(1) of CA which said undue influence can be raised in a contract by proving two (2) elements which are the wrongdoer must be in a dominant position and he uses his position to have an unfair transaction. We can see that this provision is keen to the presumed undue influence. Then, look at section 16(2)(a) provides on how to prove the dominant position. We then can cross refer this section with class 2A and Class 2B.But, what is class 2A and class 2B?
Firstly, class 2A is a category of person who is in a special relationship with certain authority which are apparent and real authority. Apparent means the authority is implied. For example, a mother can ask her son to buy her some groceries. Her son can refuse his mother request but as the relationship of parents and child, the child automatically did what his mother asked. While real authority is we can look at doctors and lawyers. Due to their position are qualified, we, as a normal client or patient always follow the advice given by them when we are in an appointment with them. In other words, their position establish an express or direct authority which make us to follow their order no matter what.
Secondly, class 2B includes the category of person who is in fiduciary relationship. For instance relationship between, husband and wife, siblings and friends. In this level of class, the only thing that need to prove is the element of trust. Therefore, if the wrongdoer stands in either both classes, by proving the required elements, then undue influence can be claimed.
While in section 16(2)(b), this is a shortcut to prove the dominant position. When a contract come with an unfair outcomes, and the plaintiff whose mental capacity is temporarily or permanently affected by reason of age, illness or mental or bodily distress, then the contract can be said to be claimed under undue influence.

That is all for today. I am a bit tired, hahaha.. I need some rest maybe.😴Do wait for my updates on part 2!!!