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What is an example of undue influence?

Undue influence can result in a voidable contract. Undue influence is when one party influences another party to act otherwise than by their own free will or without adequate attention to the consequences.

Below is an example of where undue influence was present and resulted in a voidable contract:

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  • Why would a contract be voidable?

    A voidable contract, unlike a void contract, is a valid contract which may be either affirmed or rejected at the option of one of the parties. There are a number of reasons as to why a contract could be voidable. Some examples include fraud in the inducement, economic (or social) duress, innocent misrepresentation, undue influence, mutual mistake (if related to quality), unilateral mistake, minority, or intoxication.

  • What is an example of a mutual mistake that can void a contract?

    If both contracting parties make a mistake regarding facts considered to be material, the party that is negatively affected may get out of the contract. This will typically arise when there is a lack of existence of the subject matter. Mutual mistake can either result in a void or voidable contract. Below is an example of mutual mistake where the contract is automatically void:

  • What is an example of fraud in the inducement?

    Fraud in the inducement can result in a voidable contract. Fraud in the inducement is when one party is aware that he or she is entering into a contract, but the terms of the contract are materially misrepresented. This can be done innocently and will make the contract voidable to the party that has been misrepresented. Below is an example of fraud in the inducement, which leads to a voidable contract for Victoria: