{"id":3947,"date":"2020-03-14T06:52:04","date_gmt":"2020-03-14T06:52:04","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3947"},"modified":"2020-03-14T06:52:04","modified_gmt":"2020-03-14T06:52:04","slug":"undue-influence","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/undue-influence\/","title":{"rendered":"UNDUE INFLUENCE"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/undue-influence\/#UNDUE_INFLUENCE\" title=\"UNDUE INFLUENCE\">UNDUE INFLUENCE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/undue-influence\/#TYPES_OF_UNDUE_INFLUENCE\" title=\"TYPES OF UNDUE INFLUENCE\">TYPES OF UNDUE INFLUENCE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/undue-influence\/#CASES_FALL_UNDER_CATEGORY_OF_UNDUE_INFLUENCE\" title=\"CASES FALL UNDER CATEGORY OF UNDUE INFLUENCE\">CASES FALL UNDER CATEGORY OF UNDUE INFLUENCE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/undue-influence\/#EFFECT_OF_UNDUE_INFLUENCE\" title=\"EFFECT OF UNDUE INFLUENCE\">EFFECT OF UNDUE INFLUENCE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/undue-influence\/#BURDEN_OF_PROOF\" title=\"BURDEN OF PROOF\">BURDEN OF PROOF<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"UNDUE_INFLUENCE\"><\/span><strong>UNDUE INFLUENCE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term &#8216;undue influence&#8217; means the improper or unfair use of one&#8217;s superior power in order to obtain the <a href=\"https:\/\/commerceiets.com\/free-consent-in-contract\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"consent (opens in a new tab)\">consent<\/a> of a person who is in a weaker position.<\/p>\n\n\n\n<p><strong>ACCORDING TO SECTION 16\nOF INDIAN CONTRACT ACT 1872<\/strong><\/p>\n\n\n\n<p>\u201cWhen the relations between the two parties are such\nthat one party is in a position to dominate the other party, and uses such\ninfluence to obtain an unfair advantage of the other party it will be undue\ninfluence.\u201d<\/p>\n\n\n\n<p>The section also further describes how the person can\nabuse his&nbsp;authority&nbsp;in\nthe following two ways:<\/p>\n\n\n\n<ul><li>When a person holds real or even apparent authority over the other\nperson. Or if he is in a fiduciary&nbsp;relationship&nbsp;with\nthe other person.<\/li><li>He makes a contract with a person whose mental capacity is affected by\nage, illness or distress. The unsoundness of mind can be temporary or permanent.<\/li><\/ul>\n\n\n\n<p>EXAMPLE: A sold his gold watch for only Rs 500\/- to his\nteacher B after his teacher promised him good grades. Here the consent of A is\nnot freely given; he was under the influence of his teacher.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"TYPES_OF_UNDUE_INFLUENCE\"><\/span><strong>TYPES OF UNDUE INFLUENCE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There\nare two main types, with both of them potentially resulting in the conflict\nbecoming voidable.<\/p>\n\n\n\n<p><strong>PRESUMED UNDUE INFLUENCE<\/strong><\/p>\n\n\n\n<p>This\nis when there is a presumption that the parties\u2019 relationship fundamentally\nimpacted the contract\u2019s formation. This presumption applies when there is a\nrelationship of trust between the two parties. Once the presumption is risen,\nthe \u2018dominant\u2019 party has to prove the influence did not lead to the contract\u2019s\ncreation. Common examples where the presumption arises are:<\/p>\n\n\n\n<ul><li>A parent\/child relationship when the child is under the age of 18.<\/li><li>The relationship between a solicitor and their client.<\/li><li>A doctor\/patient relationship.<\/li><\/ul>\n\n\n\n<p>Furthermore,\nother relationships can also lead to a presumed undue influence depending on\nthe facts of the case.<\/p>\n\n\n\n<p><strong>EXPRESS OR ACTUAL UNDUE INFLUENCE<\/strong><\/p>\n\n\n\n<p>In\nthese circumstances, the influence that occurred \u2018actually\u2019 exists. This means\nthat the weaker party has to actually prove that the dominant party influenced\nthem into agreeing the contract. Keep in mind, that the influence cannot merely\nbe that other party having greater economic power as they are a larger business\nor stating that they will sign with another party.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"CASES_FALL_UNDER_CATEGORY_OF_UNDUE_INFLUENCE\"><\/span><strong>CASES FALL UNDER CATEGORY OF UNDUE INFLUENCE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Relationship- <\/strong>For a case to fall in this category, it is\nnot mandatory that the parties are related to each other by blood relation,\nmarriage or through adoption but what is necessarily required is that one party\nmust be in a superior position and be able to dominate the will of the other.\nIt does not restrict itself to strict fiduciary relationships but applies to\nall varieties of relationships. However, only the existence of such\nrelationships is not able to prove undue influence but there must be an\nexercise of the dominance. <\/li><li><strong>Dominating Position-<\/strong>&nbsp;In this category of undue influence,\nthe circumstance under which the contract was made is taken in the account\nalong with their relationships. The existence of dominating position along with\nits use is mandatory to invoke an action. If once dominance is established,\nunless any contrary object appears, it is presumed that there was a use in the\nparticular instance. &nbsp;&nbsp;<\/li><li><strong>Real and Apparent Authority-<\/strong>&nbsp;In this\ntype of influence, there is a real authority like a police officer or an\nemployer who uses his dominance for his enrichment. Apparent authority is\npretending real authority without its existence.<\/li><li><strong>Fiduciary Relationship-<\/strong>&nbsp;This type of relationship is solely\nbased on the existence of trust between the parties for each other. It is such\nthat one of the parties naturally reposes its confidence in the other one and\nwith an increase in that confidence gradually, one party starts influencing the\nother. This type of relationship usually exists between doctor and patient,\nlawyer and client, parent and child, teacher and student and beneficiary of a\ntrust (<em>cestui que trust<\/em>) etc. An example of such type of case was\nin&nbsp;<a href=\"https:\/\/www.casemine.com\/judgement\/in\/5ac5e3254a93261a1a7390a9\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>Mannu Singh v. Umadat Pande<\/em><\/strong><\/a> where\na guru influenced his disciple to take his property in gift by promising to\nsecure benefits to him in the next world. The court set the gift aside as it\nwas not formed with free consent.<\/li><li><strong>Parent and Child-<\/strong>&nbsp;As parent fulfill every need of their\nchildren and want them to act on their supervision, there is an inherent\ninfluence on children from their childhood and that follows throughout their\nlife. Thus, when any benefit is transferred to the parent or any third-party on\nthe expense of the child, it is considered as jealousy on the part of a parent\nby the courts of equity. Thus in every case, children\u2019s age is always taken\ninto account to determine the extent of parental influence. In&nbsp;<a href=\"https:\/\/lawschoolguide.blogspot.com\/2011\/03\/undue-influence.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>Lancashire Loans Ltd v. Black<\/em><\/strong><\/a>,\nwhen a girl just before her marriage entered in a money lending transaction as\nsurety for her mother, it was held to be entered under undue influence.<\/li><li><strong>Affecting Mental Capacity-<\/strong>&nbsp;It is\nan established law from&nbsp;<strong><em>Inder Singh v. Dayal Singh<\/em><\/strong>that,\n\u201cundue influence arises when one party taking the advantage of the temporary or\npermanent advantage of another\u2019s mental condition executes a contract. But, a\nmere distressed state of mind cannot amount to undue influence until the\ndefendant has used this opportunity to his advantage. Similarly, instigating a\nperson to enter into a contract who has just attained his majority amounts to\nundue influence under this category due to lack of plaintiff\u2019s experience.<\/li><\/ul>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"EFFECT_OF_UNDUE_INFLUENCE\"><\/span><strong>EFFECT OF UNDUE INFLUENCE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If the consent of a party is\ninduced by undue influence, the contract is voidable at the option of the party\nwhose consent has been so caused. <\/p>\n\n\n\n<p>Section 19 A of the Act states\nthe effect of undue influence as when consent to an agreement is caused by\nundue influence the agreement is voidable at the option of the party whose\nconsent was so caused. Any such contract may be set aside either absolutely or\nif the party who was entitled to avoid has received any benefit there under,\nupon such terms and conditions as the court may seem just. <\/p>\n\n\n\n<p>For example: A, a money-lender,\nadvanced Rs. 100 to B, an agriculturist, and by undue influence, induced B to\nexecute a bond for Rs. 200 with an interest at 6 percent per month. The court\nmay set the bond aside; ordering B to repay Rs. 100 with such interest as may\nseem just. <\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"BURDEN_OF_PROOF\"><\/span><strong>BURDEN OF PROOF<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When a party to a contract\ndecides to avoid the contract on the ground of undue influence, he will have to\nprove that <\/p>\n\n\n\n<ol><li>The other party was in a position to dominate his will. It may be remembered that mere proof of nearness of relations is not sufficient for the court to assume that one person was in a position to dominate the will of the other; the dominating position of the stronger party has to be proved. <\/li><li>The other party actually used his influence to obtain an unfair advantage. The aggrieved party has not only to prove the dominating position of the struggler party but he has also to show that the stronger party had actually used his position and influenced his will to obtain an unfair advantage over him<\/li><\/ol>\n\n\n\n<p><strong>JOIN THE CHANNEL ON TELEGRAM<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/t.me\/commerceiets\" target=\"_blank\">https:\/\/t.me\/commerceiets<\/a><\/p>\n\n\n\n<p><strong>CONNECT ON LINKEDIN<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>UNDUE INFLUENCE The term &#8216;undue influence&#8217; means the improper or unfair use of one&#8217;s superior power in order to obtain the consent of a person who is in a weaker position. ACCORDING TO SECTION 16 OF INDIAN CONTRACT ACT 1872 \u201cWhen the relations between the two parties are such that one party is in a&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/undue-influence\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;UNDUE INFLUENCE&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3948,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3947"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3947"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3947\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3948"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}