Undue Influence: Definition, Examples, and How to Prevent It
What is undue influence?
Undue influence occurs when one person uses power, authority, or a close relationship to pressure another into decisions that are not in the latter’s best interest. It undermines free and informed consent and can produce agreements or actions that benefit the influencer at the expense of the influenced party.
How it happens
Undue influence typically arises from an imbalance of power or trust—because of status, expertise, emotional dependency, or control over information. Common mechanisms include:
* Persistent persuasion or pressure
* Exploiting emotional dependence or isolation
* Withholding information or presenting biased facts
* Leveraging access to confidential knowledge
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Legal significance
In many legal contexts (contracts, wills, trust disputes), transactions produced by undue influence may be voidable. When a confidential relationship exists and a suspicious transaction occurs, courts may presume undue influence. That shifts the burden to the alleged influencer to show the decision was freely made and properly informed.
Real-world example
A therapist encourages a client to invest in a real estate project the therapist is promoting. The client, feeling pressured and influenced by the therapist’s authority, makes the investment despite personal reservations and later suffers financial harm. The therapist’s position of power and self-interest create a classic case of undue influence.
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Situations and relationships at risk
Undue influence is more likely in relationships where one person depends on the other or trusts them implicitly:
* Therapist/client, doctor/patient
* Parent/child or caregiver/elderly person
* Financial advisor/client, attorney/client
* Trustee/beneficiary, corporate officers/board members
Signs to watch for
- Sudden or uncharacteristic decisions favoring one party
- Lack of independent advice or refusal to let a decision be reviewed
- Isolation of the influenced person from others who might advise them
- Transactions that disproportionately benefit the person in a position of power
Prevention and mitigation
- Involve independent counsel or a neutral third party in major transactions.
- Require documented, informed consent and clear disclosure of any conflicts of interest.
- Encourage second opinions for significant financial or legal decisions.
- Maintain transparent procedures for trustees, advisors, and fiduciaries.
- Keep written records of how decisions were explained and made.
Remedies
Affected parties may be able to:
* Void or rescind contracts or transactions
* Challenge wills or trust modifications
* Seek restitution or other equitable relief through the courts
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Key takeaways
- Undue influence abuses a power or trust relationship to produce decisions that are not truly voluntary.
- It is legally significant and can render agreements voidable.
- Independent advice, documentation, and neutral oversight reduce the risk.
- Watch for sudden, uncharacteristic decisions and disproportionate benefits as warning signs.
Selected sources
- Cornell Law School, Legal Information Institute — “Undue Influence”
- Fraser, Ian W., “Ware v. Ware and the Presumption of Undue Influence,” Alaska Law Review, vol. 38, no. 2.