LEGAL PRINCIPLE: EQUITY AND TRUSTS — Undue Influence — Actual Undue Influence — Transaction Set Aside Without Proof of Disadvantage Where Influence Expressly Used
PRINCIPLE STATEMENT
Undue influence is a state of mind where a person is subdued by improper persuasion or machination, overpowered, and induced to do an act against his free will. It is the product of abuse of confidence, pressure, or unfair advantage of another's necessities or distress.
RATIO DECIDENDI (SOURCE)
Per Uwaifo, JSC, in Bua v. Dauda (2003) NLC-1371999(SC) at pp. 6–7; Paras D–A.
"Undue influence is no doubt elusive of satisfactory definition but it may be regarded as a state of mind of a person who has been subdued to any improper persuasion or machination in such a way that he is overpowered and consequently induced to do or forbear an act which he would otherwise do or not do of his free will. It is a product of the abuse or misuse of the confidence reposed in some one who is able to put some pressure on or take unfair advantage of another; or who takes an oppressive and unfair advantage of another's necessities or distress."
EXPLANATION / SCOPE
Undue influence renders transactions voidable. The principle applies to gifts and contracts. The court may set aside transactions without proof of disadvantage. The rule protects vulnerable parties. The influence must be improper. The principle is equitable.