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 Prasad1Raghunath Prasad v Sarju PrasadIssueWhether the contract between the parties is induced by undue influence?Facts:The dispute involved joint family property owners, Raghunath Prasad andhis son Sarju Prasad. The latter, facing legal issues, mortgagedproperties to his father, borrowing ten thousand rupees at 24%compound interest. Alleging undue influence, Sarju Prasad contendedthat exorbitant interest rates took advantage of his mental distress.Held ( -ve )The Court held that the plaintiff was unable to prove that the defendantdominated his position, and the contract was induced by the undueinfluenced. Hence, the conditions of the three steps process are notfulfdled.Tj2£ a?¥?iinterestratefi’o mdate of the execution.Thus, essentially, three things/steps:1. In a position to dominate2. Uses that position to obtain contract3. The burden of proving it was not undue influence falls on the oneaccused of it* "In a position to dominate---------" has been categorised into----------two .

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Civil Law

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