What can happen if a party is unduly influenced in a contract?

If a party is unduly influenced in a contract, they have the right to declare the contract void or insist on its performance. Undue influence occurs when one party takes advantage of their position of power over another party to gain unfair advantage in the formation of a contract. This influence can compromise the free will of the influenced party, leading to a situation where the agreement is not truly voluntary.

In legal terms, if a contract is formed under undue influence, the affected party can argue that they were not fully capable of making an informed decision, therefore undermining the validity of the contract. This enables them to seek rescission of the contract (voiding it) based on the inappropriateness of the circumstances under which they entered. Alternatively, depending on the situation, they can also insist on enforcing the contract, as long as they can demonstrate the undue influence present.

Choosing to renegotiate the contract or fulfill the contract as agreed may not effectively address the root issue of undue influence, as it does not rectify the lack of free will in the original agreement. Suing for damages could be a potential pathway, but it typically is not the primary remedy most sought in cases of undue influence; the focus often lies in declaring the contract void.