Legal KattaLegal Katta
    Facebook YouTube Telegram Instagram
    Trending
    • Article 1 of the Constitution of India
    • Article 14 of Constitution of India – Right to Equality
    • Doctrine of Waiver in Indian Constitution
    • What is an Acceptance in Contract Law?
    • What is an Offer in Law? and Types of Offer
    • Ashby vs White Case Summary
    • Institution of Suit under CPC
    • Difference Between Cheque and Promissory Note
    Facebook Twitter Instagram
    Legal KattaLegal Katta
    • Law Articles
    • Law Notes
      • Constitution of India
      • Law of Contracts
      • Civil Procedure Code
      • Criminal Procedure Code
    • Legal Drafting
    • Guest Post
    • More
      • Contact us
      • About us
      • Guest Post
    Legal KattaLegal Katta
    Home»Law of Contracts»Meaning And Essentials of Undue Influence in Contract Law
    Law of Contracts

    Meaning And Essentials of Undue Influence in Contract Law

    AkashBy Akash1 Comment117 Views6 Mins Read
    Facebook WhatsApp Telegram Twitter Pinterest LinkedIn Reddit Tumblr Email

    undue influence, undue influence means, undue influence meaning, meaning of undue influence in hindi, undue influence examples, what is undue influence, undue influence make a contract, what's undue influence, undue influence meaning in law, undue influence meaning in english, undue influence in contract law, undue influence in business law, effects of undue influence, essentials of undue influence, undue influence cases, undue influence defintion, undue influence section 16,

    Undue Influence meaning and essentials of undue influence have been provided under section 16 of the Contract Act, which is a person who is influenced (prevented) by someone from exercising an independent judgment, such a person is said to be influenced. Undue influence makes a contract voidable. Let’s discuss what is undue influence means?

    Undue influenced means is given under section 16 of the Indian Contract Act, 1872 as 

    1) A contract is said to be induced by “Undue Influence” where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other.

    2) In particular and without prejudice to the generally of the foregoing principle, a person is deemed to be in a position to dominate the will of another –

    a) where he holds a real or apparent authority over the other, or where he stands in a fiduciary relation to the other; or

    b)  where he makes a contract with a person whose mental capacity is temporarily or permanently affected because of age, illness, or mental or bodily distress.

    3) Where a person who is in a position to dominate the will of another enters into a contract with him, and the transaction appears, on the face of it or on the evidence adduced, to be unconscionable, the burden of proving that such contract was not induced by the undue influence shall be upon the person in a position to dominate the will of the other.

    Generally, undue influence in English law can be defined as ‘when a superior party uses force to his inferior person and he is in the position to dominate the will of the other person and contract formed is apparently unconscionable that the consent must have been obtained by the Undue Influence.

    Undue influence makes a contract voidable at the option of the party whose will is dominated by the other party.

    Example: A, a person enfeebled by disease or age, is being induced, by B’s influence over him as his medical attendant, to agree to pay B an unreasonable sum for his professional services, B employs undue influence over A.

    Essentials of Undue Influence

    As per the definition of undue influence, the following are the essentials of undue influence;

    1. There must be some relation between the contracting parties.
    2. One of the parties to the contract dominate the will of the other
    3. The dominating party has taken unfair advantage of the weaker party.
    4. Obtained consent is unconscionable.

    1. There must be Some Relation Between the Contracting Parties

    The contracting parties must hold some relationship. For Example, employer-employee, principal-agent etc.

    The parties to the contract must be well known to each other and one of the parties must be in relation with another party.

    Section 16(2) of the Indian Contract Act, 1872, stated that undue influence can emerge into the provision on real or apparent authority and fiduciary relation. The relationship between the contracting parties can be either a real/apparent relation or fiduciary relation.

    a) Real or Apparent Authority

    The real or apparent authority is a relationship between the contracting parties where one party is superior and in a position to dominate the will of the other party.  For example, Father-Son, Employer-Employee.

    b) Fiduciary Relation

    The fiduciary relationship is a relationship between the contracting parties where the relation is made up of trust or belief between the parties. For example, the Advocate and his Client, Doctor and Patient, Husband and Wife.

    2. One of the Parties to the Contract Dominate the Will of the Another

    As stated above, the parties to the contract must hold a certain relationship. And, one of the parties to the contract must be in a position to dominate the will of the other party to the contract.

    For example, principal and agent, here one party is in the position to dominate the will of the other party.

    3. Dominating Party has Taken Unfair Advantage Over the Weaker Party

    One of the parties to the contract must be in the position to dominate the will of another party and the dominating party must have taken unfair advantage of his position by dominating the other weaker party.

    4. Obtained Consent is Unconscionable

    As we know, the contract is made without the free consent of the parties is voidable. Here, also in a contract, if one party is superior to the other party, it can dominate the weaker party to obtain the other party’s consent to enter into a contract. 

    This is an example of obtained consent being unconscionable.

    Effects of Undue Influence in Contract Law

    According to section 19(A) of the Indian Contract Act, 1872, stated that “An agreement induced by the Undue Influence is voidable at the option of that party whose consent was obtained by undue influence.”

    So, the agreement made up by the undue influence between the contracting parties becomes voidable at the option of the party who is dominated by the other party. In such a situation, the agreement can be either a valid contract or a void contract.

    Lakshmi Amma v/s T. Narayana Bhatt, 1970

    In this case, a person suffered from ailments and he was getting treatment in the nursing home. And, his son took care of him and also requested his father to make a gift deed of all his properties in favour of his son otherwise he will not take care of him.

    At this time he made a gift deed and all the properties belonging to him was gifted by him to his son excluding his other family members.

    The court held that the person is suffering from ailments and in this situation deed made by him is under influence of his son, the gift deed was voidable.

    Conclusion

    Undue influence is one of the ways, where the consent of the party is inadequate as stated under section 13 of the Indian Contract Act, 1872. One party influences the other party to enter into a contract with him by influencing the other party due to the use of fiduciary relation or real/apparent authority. Such agreements are voidable at the option of the party whose consent was obtained by influencing him.

    Referred Books:

    • Law of Contract – Bare Act 2021 Edition Professional
    • The Indian Contract Act 1872 Bare Act 2021 Edition
    • Law of Contract & Specific Relief Dr Avtar Singh Latest Edition-2020
    • Pollock & Mulla – The Indian Contract Act, 1872
    • CONTRACT Paper  I – By R.K. Bangia [Edtion 2019 – 2020]
    • CONTRACT Paper-II – By R. K. Bangia
    • NOTES ON INDIAN CONTRACT ACT 1872: BEST NOTES FOR LAW STUDENTS
    Share. Facebook WhatsApp Telegram Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    What is an Acceptance in Contract Law?

    May 7, 2023

    What is an Offer in Law? and Types of Offer

    May 7, 2023

    Creation of Agency: Types of Agency

    October 7, 2022
    View 1 Comment

    1 Comment

    1. UptoWord on October 12, 2022 6:08 am

      I found this blog post to be very informative. I learned a lot about undue influence in contract law.

      Reply

    Leave A Reply Cancel Reply

    Categories
    About us

    Legal Katta is a comprehensive Legal Website covering Legal News, Law Articles, Law Notes, Video Lectures, Judiciary, LLB Notes, Case Studies, RTI

    Disclaimer

    Legal Katta intends to provide educational and informative content. Readers need to recheck the validity and accuracy of the content from their own independent sources before using any information on the website in what so ever manner. Any further reproduction or unfair use of this content by you may be the subject of copyright protection under the Digital Millennium Copyright Act (DMCA).

    Facebook Telegram YouTube Instagram
    © 2023 Legal Katta.

    Type above and press Enter to search. Press Esc to cancel.