THE EQUITABLE DOCTRINE OF UNDUE INFLUENCE CONSIDERED IN THE CONTEXT OF SPIRITUAL INFLUENCE AND RELIGIOUS FAITH: ALLCARD v SKINNER REVISITED IN AUSTRALIA

The equitable doctrine of undue influence allows for the rescission of a gift or contract arising out of a relationship of influence between the transacting parties. The doctrine applies in two ways. The first application is through ‘actual undue influence’ where it must be proved that one party unconscionably used their position of significant influence in the relationship to secure the transaction. Actual undue influence is analogous to duress at common law although it allows more flexibility as to the type of conduct that will justify relief. The alternative application of the doctrine of undue influence is through ‘presumed undue influence’. Here, the court presumes that the transaction resulted from the unconscionable exertion of influence if two factors are satisfied. The first is whether there is a sufficiently strong relationship of