Undue influence occurs when one party uses their position of power over another to unduly persuade them into a contract, compromising the latter's free will. This can make the contract voidable at the option of the influenced party.
Undue influence is often seen in relationships where there is a significant power imbalance, such as between a caregiver and a dependent. A classic example is the case of Allcard v Skinner (1887), where a nun was influenced by her spiritual advisor to transfer her property. In exams, you might be asked to identify signs of undue influence and discuss whether the contract should be set aside.
Explore our Tort Law Notes for a deeper understanding of undue influence, including case law and practical examples.