BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS LAW

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
True or False:When one party to the contract is in a position of trust and wrongfully dominates the other party, undue influence occurs.
A
False
B
True
Explanation: 

Detailed explanation-1: —(1) A contract is said to be induced by “undue influence” where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other.

Detailed explanation-2: -Undue influence is a contract law principle that looks at the quality of consent and considers whether each party provides their consent to a contract freely and voluntarily. In particular, it looks at whether the relationship between the parties forced one party to sign when they otherwise might not want to.

Detailed explanation-3: -The use of undue influence by one party over another puts the free will of one of the parties entering the contract into question, and therefore leads to the contract being unenforceable and voidable by the victim party.

Detailed explanation-4: -A employs undue influence. (a) A having advanced money to his son, B, during his minority, upon B’s coming of age obtains, by misuse of parental influence, a bond from B for a greater amount than the sum due in respect of the advance. A employs undue influence."

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