Question 1
When the courts find that undue influence is present, the resulting contract is:
◦ unenforceable.
◦ voidable.
◦ void.
◦ illegal.
◦ binding.
Question 2
With respect to having the court set aside a contract on the basis of undue influence, which of the following is false?
◦ If a client transferred property to his lawyer and later claimed the transfer was due to undue influence, the law would presume the transfer was due to undue influence.
◦ Where undue influence is established, the resulting contract is voidable, not void.
◦ If you are a dominant person in relation to an aged relative who wants to sell you his house below market value, you should insist that the aged relative receive independent legal advice.
◦ If the court presumes the existence of undue influence, the person asking for the return of the property will automatically get it back.
◦ A contract made in favour of a dominant person who exerted undue influence over the weaker party is voidable at the option of the weaker party.
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