With respect to having the court set aside a contract on the basis of undue influence, which of the following is false?
A) 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.
B) If the court presumes the existence of undue influence, the person asking for the return of the property will automatically get it back.
C) 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.
D) 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.
E) Where undue influence is established, the resulting contract is voidable, not void.

Question

Quizplus · Accepted Answer

The statement that if the court presumes the existence of undue influence, the person asking for the return of the property will automatically get it back is false. The presumption of undue influence shifts the burden of proof to the dominant party to prove that the transaction was fair and not a result of undue influence. However, this does not guarantee automatic restitution; the court will consider evidence and arguments from both sides before making a decision.

With Respect to Having the Court Set Aside a Contract