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(1)A contract is induced by undue influence where the relationship subsisting between the parties to a contract is such that one of the parties is in a position to dominate the will of the other party and uses that position to obtain an unfair advantage over the other party.
(2)For the purposes of subsection (1), a party is taken to be in a position to dominate the will of another party, where—
(a)the party holds a real or apparent authority over the other party;
(b)the party stands in a fiduciary relationship to the other party; or
(c)the mental capacity of the other party is temporarily or permanently affected by reason of age, illness, mental or bodily distress.
(3)Where a party who is in a position to dominate the will of the other party, enters into a contract with that other party and the transaction appears, on the face of it or on the evidence adduced, to be unconscionable, the burden of proving that the contract was not induced by undue influence shall be upon the party in a position to dominate the will of the other party.
(4)Nothing in subsection (3) shall affect section 111 of the Evidence Act.
(5)In this section, a party is said to stand in a fiduciary relationship to another party if the party has duties involving good faith, trust, special confidence and candor towards that other party, such as a relationship between an attorney and a client, a guardian and a ward, a principal and an agent, an executor and an heir, a trustee and a beneficiary or a landlord and tenant.
You have the right to challenge a contract if it was made under undue influence. Undue influence happens when one party is in a position to dominate t...
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