Undue Influence –
Inche Noriah v Shaikh Allie Bin Omar
Facts: An Old
illiterate Malay woman had executed a deed gift to her nephew.
Judgment: There
is a presumption of undue influence
Case:
Undue influence was alleged against a nephew over his
elderly aunt. One solicitor had drafted the deed of gift, and another had
witnessed it. The solicitor had established that she understood it and entered
into it freely, but had not asked enough to establish that it was almost her
entire estate, and had not advised her that a better way to achieve the result
would be by will.
Held: The gift failed for undue influence. Usually a
presumption of undue influence may be rebutted by showing that the transaction
was entered into ‘after the nature and effect of the transaction had been fully
explained to the donor by some independent qualified person.’
However (Lord Hailsham LC): ‘their Lordships are not
prepared to accept the view that independent legal advice is the only way in
which the presumption can be rebutted.’ and ‘It is necessary for the donee to
prove that the gift was a result of the free exercise of independent will. The
most obvious way to prove this is by establishing that the gift was made after
the nature and effect of the transaction had been fully explained to the donor
by some independent and qualified person so completely to satisfy the court
that the donor was acting independently of any influence from the donee and
with the full appreciation of what he was doing; and in cases where there can
there are no other circumstances this may be the only means by which the donee
can rebut the presumption.’
My Comments:
According to sec 16, A person may rescind a transaction when
he or she was pressured to enter into te contract by the influence of the
other. A person in a position to dominate the will of other person if he enters
into a contract with a person whose mental capacity is temporarily affected or
age.
The elderly aunt, a woman enfeebled by age, is induced, by
her nephew influence over her because of her age, agree to gift all of her property.
But he had not brief her enough about the situation. So the elderly aunt
employs undue influence.