What does "undue influence" typically involve in a contract?

"Undue influence" in the context of a contract involves a situation where one party exerts improper persuasion over another, which significantly affects the latter's decision-making process. This means that the influence is not merely a gentle push or suggestion, but rather an overbearing or manipulative force that compromises the voluntary nature of the agreement.

The concept is crucial in contract law because contracts should be entered into freely and voluntarily; when one party's decision is heavily swayed by an imbalance of power—often found in relationships where one party is in a position of trust or authority over the other—this undermines the fairness intended in contractual agreements.

Peer pressure, negotiation tactics, or legal coercion do not capture the essence of "undue influence" as they may involve elements of persuasion that are considered acceptable in many contexts. Undue influence specifically pertains to situations where the influence is considered improper and detrimental to the decision-making autonomy of the influenced party.