This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
Undue influence may be presumed where the evidence shows that the parties to the transaction occupied certain confidential relations.1 Other facts may strengthen this presumption, or, existing in combination, may, without the aid of such presumption, establish the fact of undue influence.2 Of these facts the most important are the following: (1) A weakness of mind which amounts to a technical incapacity, makes the transaction voidable, and if proven, eliminates the question of undue influence.3 Weakness of mind not amounting to technical incapacity, is an important element in connection with other facts in establishing the existence of undue influence. (2) A misstatement of fact which amounts to fraud, or in some jurisdictions to misrepresentation, makes the contract voidable. If such fraud or misrepresentation is proved, the question of the additional existence of undue influence is ordinarily immaterial. A misstatement which falls short of technical fraud, such as a misrepresentation of law, may be an important element in establishing the fact of undue influence.4 (3) Non-disclosure may, in certain specific cases, make the contract voidable.5 In other cases, however, which do not fall within any of the recognized classes, non-disclosure may, in connection with other facts, serve to establish the existence of undue influence.6 (4) Inadequacy of consideration does not destroy the validity of a contract, if there is a thing of value as consideration, and there is no fraud, misrepresentation or mistake.7 In connection with other facts, inadequacy of consideration is an important element in determining whether undue influence exists.8 (5) The circumstances of oppression which amount to technical duress will be discussed.9 However, circumstances of oppression short of duress, and not of themselves avoiding the contract, may, in connection with other facts, be important as establishing the presence of undue influence.10
1 See Sec. 482. 2 See Sec. 322 et seq. 1See Sec. 446 et seq. 2See Sec. 459 et seq. 3See ch. XLVII.
4 See Sec. 484. 5 See ch. XIV. 6See Sec. 461, 473. 7 See Sec. 635 et seq. 8 See Sec. 635 et seq.