Sometimes the parties to an agreement are so related to each
other that one party is in a position to dominate the will of the other. One
party is compelled to enter into an agreement against his will as a result of
“Undue Influence” exerted by the other party who is in dominating position.
Undue Influence is moral coercion as opposed to physical
coercion mentioned in Section 15. It is the domination of a weak mind by a
strong mind to extent which cause the behavior of the weaker person to assume
an unnatural character. It is an influence which compels another person to do
something which he would not have done if he had been a free agent. A friendly
advice or presuation would not constitute undue influence.
Section 16 of the Indian Contract Act provides that, ”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 the position to obtain an unfair
advantage over the other.
No comments:
Post a Comment