Posted February 1, 2014 by advocateguru in Learning Centre
 
 

Undue influence

 

(i) 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.

(ii) In particular and without prejudice to the generality of the forgoing 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 by reason of age, illness, or mental or bodily distress.

(iii) 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 undue influence shall lie upon the person in a position to dominate the will of the other.

There is however no presumption of undue influence in case of relationship of— (a) landlord and tenant (b) debtor and creditor (c) husband and wife. The wife has to be pardanashin for such presumption. In these relationships undue influence has to be proved.

Illustrations

(a) A, having advanced money to his son, B, during his minority, Upon B’s coming of age obtains, by misuse of parental influence, a bond from B for a greater amount than the sum due in respect of the advance. A employs undue influence.

(b) A, a man enfeebled by disease or age, is 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.

 

Thus, In order to constitute undue influence it is necessary to prove that (i) the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of other party and (ii) such person uses his dominant position to obtain unfair advantages over the other.


advocateguru