The impact of power imbalance and undue influence on financial agreements – should you be concerned?
In Thorne v Kennedy [2017] HCA 49, the High Court determined that two financial agreements were voidable due to an inequality of bargaining power and a lack of fair or reasonable alternatives available to one of the parties. If there is a significant power imbalance, parties to a relationship should consider whether it is prudent to have a financial agreement or if there may be preferable alternatives to quarantine their wealth.