Saturday, February 8, 2014

Filled Under:

UNDUE INFLUENCE

UNDUE INFLUENCE:
Meaning of Undue influence[section 16(1)]: The term 'undue influence' means dominating the will of the other person to obtain an unfair advantage over the other. According to section 16(1), a contract is said to be induced by undue influence

where the relations subsisting between the parties are such that one of them is in a position to dominate the will of the other, and
the dominant party uses that position to obtain an unfair advantage over the other.

Effect of undue influence [section 19A]: when consent to an agreement is caused by undue influence, the agreement is a contract voidable at the option of the party whose consent was so caused.
Comparison between coercion and undue influence:
Similarities: In case of both coercion and undue influence, the consent is not free and the contract is voidable at the option of the aggrieved party.

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