Undue Influence in Contract Law Key Cases and Clas
This summary explores undue influence in contract law, distinguishing between actual and presumed influence. It analyzes leading cases, legal principles, classifications (Class 1, 2A, 2B) the requirement of manifest disadvantage in equitable claims.
Mason Bennett
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Raghunath Prasad v Sarju Prasad 1
Raghunath Prasad v Sarju Prasad
Issue
Whether the contract between the parties is induced by undue influence?
Facts:
The dispute involved joint family property owners, Raghunath Prasad and
his son Sarju Prasad. The latter, facing legal issues, mortgaged
properties to his father, borrowing ten thousand rupees at 24%
compound interest. Alleging undue influence, Sarju Prasad contended
that exorbitant interest rates took advantage of his mental distress.
Held ( -ve )
The Court held that the plaintiff was unable to prove that the defendant
dominated his position, and the contract was induced by the undue
influenced. Hence, the conditions of the three steps process are not
fulfdled.
Tj2£ a?¥?i interest rate fi’o m date of the execution.
Thus, essentially, three things/steps:
1. In a position to dominate
2. Uses that position to obtain contract
3. The burden of proving it was not undue influence falls on the one
accused of it
* "In a position to dominate---------" has been categorised into----------two .
Raghunath Prasad v Sarju Prasad
Issue
Whether the contract between the parties is induced by undue influence?
Facts:
The dispute involved joint family property owners, Raghunath Prasad and
his son Sarju Prasad. The latter, facing legal issues, mortgaged
properties to his father, borrowing ten thousand rupees at 24%
compound interest. Alleging undue influence, Sarju Prasad contended
that exorbitant interest rates took advantage of his mental distress.
Held ( -ve )
The Court held that the plaintiff was unable to prove that the defendant
dominated his position, and the contract was induced by the undue
influenced. Hence, the conditions of the three steps process are not
fulfdled.
Tj2£ a?¥?i interest rate fi’o m date of the execution.
Thus, essentially, three things/steps:
1. In a position to dominate
2. Uses that position to obtain contract
3. The burden of proving it was not undue influence falls on the one
accused of it
* "In a position to dominate---------" has been categorised into----------two .
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Subject
Civil Law