LEGAL PRINCIPLE: EQUITY AND TRUSTS — Undue Influence — Burden of Proof — Burden on Donee to Show Righteousness of Transaction in Presumed Undue Influence Cases
PRINCIPLE STATEMENT
Where relations give a party peculiar opportunities to exercise influence, if that party enters into a contract with or receives a gift from the other, equity imposes on that party the burden of proving that he exerted no influence for the purpose of obtaining it.
RATIO DECIDENDI (SOURCE)
Per Uwaifo, JSC, in Bua v. Dauda (2003) NLC-1371999(SC) at p. 10; Paras A–B.
"In certain cases the relation between A and B may be such that A has peculiar opportunities of exercising influence over B. If under such circumstances A enters into a contract with B, or receives a gift from B, a court of equity imposes upon A the burden, if he wishes to maintain the contract or gift, of proving that in fact he exerted no influence for the purpose of obtaining it."
EXPLANATION / SCOPE
In presumed undue influence cases, the beneficiary bears the burden. The principle applies to fiduciary relationships. The donee must prove the transaction was independent and spontaneous. The rule protects vulnerable parties. The burden shifts once a relationship of influence is shown. The principle is equitable.