First Principles of Business Law
Circumstances that may invalidate a legal transaction

3. Undue Influence

3.2. Situations involving a presumption of a 'general' controlling influence

 

 

 

Read the facts and the question and then choose the best answer.

A, a solicitor, says to B, her client: "I have reviewed your legal situation and I think you should sell your farm in Tasmania as soon as possible. I am prepared to offer you $150,000 for it, which is what you paid for it last year."

B replies to A: "OK, if that's what you think I must do, prepare the papers and I'll sign them."

In this situation, would it be presumed that A improperly used a general controlling influence to get B's consent to the contract?
a) Yes. Because A and B are solicitor and client, an improper use of a general controlling influence by A over B will be presumed.

(b) No. Even though A and B are solicitor and client, B will have to prove that A had a general controlling influence over B, and also that A used this influence improperly.

 

 

 

 

 

 

 
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