Question:
A contract is said to be induced by __________ where the relation subsisting between the parties is 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.
A contract is said to be induced by __________ where the relation subsisting between the parties is 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.
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Contracts induced by undue influence are voidable, meaning the party whose will was dominated has the right to rescind the contract.
Updated On: Jun 5, 2026
- Fraud
- Undue influence
- Misrepresentation
- Coercion
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The Correct Option is B
Solution and Explanation
Concept:
For a contract to be legally valid, it must be entered into with free consent. When one party uses their power over another to distort that consent, the law terms this 'Undue Influence'.
Step 1: Defining Undue Influence (Section 16, Indian Contract Act).
Undue influence occurs when there is a relationship between parties (such as fiduciary relationships, doctor-patient, teacher-student, or parent-child) that allows one party to dominate the other.
Step 2: Analyzing the criteria for Undue Influence.
The criteria for establishing undue influence are twofold: 1. One party must be in a position to dominate the will of the other. 2. The dominant party must use that position to extract an unconscionable or unfair advantage.
Step 3: Distinguishing from Coercion.
While 'Coercion' (Section 15) involves physical threats or duress to force consent, 'Undue Influence' involves mental, emotional, or moral dominance over the other party's decision-making ability. equation Dominating will for unfair advantage = Undue influence equation center Undue influence center
Step 1: Defining Undue Influence (Section 16, Indian Contract Act).
Undue influence occurs when there is a relationship between parties (such as fiduciary relationships, doctor-patient, teacher-student, or parent-child) that allows one party to dominate the other.
Step 2: Analyzing the criteria for Undue Influence.
The criteria for establishing undue influence are twofold: 1. One party must be in a position to dominate the will of the other. 2. The dominant party must use that position to extract an unconscionable or unfair advantage.
Step 3: Distinguishing from Coercion.
While 'Coercion' (Section 15) involves physical threats or duress to force consent, 'Undue Influence' involves mental, emotional, or moral dominance over the other party's decision-making ability. equation Dominating will for unfair advantage = Undue influence equation center Undue influence center
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