My grandmother deeded property to my mother by a Deed of Gift. Her siblings are contesting the legality of the Deed of Gift. ...
Full Question:
My grandmother deeded property to my mother by a Deed of Gift. Her siblings are contesting the legality of the Deed of Gift. What grounds could they have?
08/19/2007 |
Category: Real Property ยป Deeds |
State: Washington |
#8047
Answer:
An deed or agreement may be set aside if it was not in fact entered into voluntarily by both of the parties. If either party entered into it because of undue influence or physical duress, it may be set aside.
Undue influence arises in a situation where a confidential type relationship exists and one party has such influence over the other party that the other party's free will is dominated to the benefit of the influencing party. Confidential relationships which may result in undue influence can be such things as the relation¬ship of an elderly parent and an adult child, a physician and patient, an attorney and client, or any other relationship of trust and confidence in which one party exercises a control or influence over another. Because of the possibility that a person in such a confidential relationship may dominate the will of another and take unfair advantage, if such a confidential relationship exists, the law presumes that undue influence has occurred if the dominating party obtains any benefit from an agreement made with the person alleged to be dominated. The agreement is then voidable and may be set aside unless it can be proven that no such domination took place. Persuasion and argument are not in themselves undue influence. An essential element of undue influence is that the person making the agreement does not exercise his free will. Unless there is a confidential relationship, such as that between a parent and child, Courts are most likely to take the attitude that the person who claims to have been dominated was merely persuaded. Parties to an agreement must have contractual capacity before the agreement will be binding on both parties. Contractual capacity is the ability to understand that a contract is being made and to understand its general nature. The fact that a person does not fully understand the meaning and all ramifications of a contract does not mean that the person lacks contractual capacity. A person who is mentally incompetent (NCM) lacks the capacity to make a contract. The cause of the mental incompetency is immaterial. It can be the result of a mental illness, excessive use of drugs or alcohol, a stroke, etc. If the person does not have the mental capacity to understand that a contract is being made or the general nature of the contract, the person lacks contractual capacity. A person who is mentally incompetent may ordinarily avoid a contract in the same manner as a minor. If the person becomes normal, he can ratify or avoid the contract at that time.