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Which one of the following statements with regard to factors vitiating consent is correct? (1) A person…

Statement 1 is correct because a fiduciary relation is a s.16(2) case of dominance, and statement 2 is correct because s.16(3) places the burden on the dominant party where…

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Which one of the following statements with regard to factors vitiating consent is correct?
(1) A person is deemed to be in a position to dominate the will of another where he stands in a fiduciary relation to the other
(2) Where a person who is in a position to dominate the will of another enters into a contract with him, the burden of proving that such consent was not induced by undue influence would, where the transaction appears to be unconscionable, be upon the person in a position to dominate the will of the other
(3) Parents shall always be deemed to be in a position to dominate the will of their children
(4) Presumption of undue influence would always arise when parties are nearly related to each other

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Correct answer B

Statement 1 is correct because a fiduciary relation is a s.16(2) case of dominance, and statement 2 is correct because s.16(3) places the burden on the dominant party where the transaction appears unconscionable; statement 3 is wrong since parents are not always presumed to dominate their children, and statement 4 is wrong since near relationship alone raises no presumption, so "1 and 2".

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