Influence is a part of daily life. We’re persuaded by family, friends, advertisements, colleagues, and even social media. But influence becomes dangerous when it crosses the line and strips someone of their free will. This is where the concept of undue influence comes in—a legal and psychological issue that can have devastating consequences.
In Australian law, undue influence often arises in disputes over contracts, wills, property transfers, and financial arrangements. Victims may lose money, assets, or control over their own decisions, while the party in power gains unfair benefit. Beyond the courtroom, the psychological toll can also be significant, eroding a person’s autonomy and sense of identity.
What Is Undue Influence?
Undue influence occurs when one person uses manipulation, coercion, or a position of trust to pressure another into making a decision or entering an agreement that does not serve their best interests. In contract law, this undermines the principle of free consent. If a court finds that undue influence was at play, the agreement may be declared voidable, restoring fairness to the disadvantaged party.
It’s worth noting that undue influence does not always look like overt threats. Sometimes it can be subtle—emotional pressure, exploitation of trust, or taking advantage of someone’s vulnerability. This makes proving it in court particularly challenging.
Common Scenarios Where It Appears
Undue influence can arise in several contexts. In family relationships, for example, a parent might pressure an adult child into guaranteeing a loan, or an adult child might manipulate an elderly parent into changing their will. In professional settings, relationships of trust—such as doctor-patient or solicitor-client—are also fertile ground for undue influence claims.
Commercial dealings can be another arena. A large company may exert excessive pressure on a smaller supplier to sign contracts on unfair terms. Similarly, lenders may push vulnerable borrowers into accepting agreements with harsh conditions.
When disputes of this nature arise, working with experienced professionals such as Sydney family lawyers can provide guidance and support. These experts understand both the legal framework and the emotional complexity involved.
Proving Undue Influence in Court
Demonstrating undue influence is rarely straightforward because it often involves intangible factors like manipulation and the mental state of the influenced party. Courts generally look at whether there was a relationship of trust, evidence of coercion, unusual contract terms, or a lack of independent advice.
For instance, if an elderly person signed away property without consulting a lawyer, this could be a red flag. Courts also consider whether the person was especially vulnerable—due to age, illness, or emotional reliance on the other party. In some cases, once a presumption of undue influence is raised, the burden shifts to the alleged influencer to prove the transaction was fair.
Two Types of Undue Influence
Undue influence is often divided into two categories. Actual undue influence requires clear evidence of manipulation or pressure that caused a person to act against their will. Presumed undue influence, on the other hand, arises automatically in certain relationships, such as solicitor-client or parent-child, where one party is in a position of power or trust.
In less formal relationships, such as between romantic partners or close friends, the presumption can still apply if one party heavily relied on the other. Once this presumption exists, the onus is on the dominant party to prove the agreement was entered into freely and fairly.
Undue Pressure vs Special Relationships
“Undue pressure” refers to specific behaviours that push someone into an unfair agreement, such as threats or relentless persuasion. A “special relationship,” meanwhile, is about the nature of the connection—like a trustee and beneficiary—where the potential for influence is built in.
Both concepts are significant because they help courts decide whether a transaction was the product of free choice or coercion. Lawyers specialising in disputes like these, such as Melrose Keys Lawyers, often deal with cases where these subtle distinctions determine the outcome.
Possible Defences Against an Undue Influence Claim
If accused of undue influence, the defending party may argue that the other acted voluntarily and with full understanding of the agreement. Evidence of independent advice, fair explanations of the terms, or proof that the arrangement genuinely benefited both sides can be strong defences.
Another common defence is demonstrating that no relationship of trust or dependency existed, meaning both parties dealt with each other on equal footing. Additionally, if the influenced party continued to honour the contract long after any alleged pressure ended, this may count as affirmation, limiting their ability to challenge the agreement later.
Consequences and Remedies
Undue influence cases are usually dealt with under civil law. While there are no criminal penalties, the civil remedies can be significant. Contracts may be rescinded, restoring parties to their original positions. Courts may also order restitution, requiring property or money to be returned, or award damages to compensate for losses.
In some cases, injunctions are issued to prevent further harm, such as stopping the enforcement of an unfair contract. These remedies aim to protect the rights of the vulnerable and deter others from abusing their influence.
Final Reflections
Undue influence sits at the intersection of law and psychology. It is not always loud or obvious—sometimes it’s quiet persuasion that strips someone of their independence. Understanding how it works, when it applies, and how to defend against it is essential for both protecting yourself and ensuring fairness in contracts and relationships.
For anyone who feels they might be caught in an arrangement shaped by pressure or manipulation, seeking professional legal advice early can make a world of difference.
Author Bio: Jeryl Damluan is a seasoned SEO Specialist and Outreach Specialist who excels at building authority links and amplifying online presence for law firms and businesses. With a focus on strategic content creation and digital marketing, she crafts compelling resources that educate readers and establish expertise in complex legal topics.
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