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.
1. Position to Dominate:
In order to prove undue influence it is necessary that relations existing between the parties should be such that one of them must be in a position to dominate the will of the other. The person who occupies the superior position may be in a position to obtain the consent of another party.
Example:
U, a spiritual adviser induced his follower M to gift to him the whole of his property to secure benefits to his soul in t he next world. Such consent is said to be obtained by undue influence. U is in a position to dominate the will of another.
2. Unfair Advantage:
In order to prove undue influence it is also necessary that the party who is in a dominating position must have used his position to obtain an unfair advantage from the other.
Example:
A, having advanced money to his son B, obtains from him, by misuse of parental influence, a bond for a greater amount than the sum advanced. A obtains unfair advantages.
Distinction between Coercion and Undue influence
The following are the points of distinction between the two.
COERCION | UNDUE INFLUENCE |
Nature Coercion is a physical threat either to property or person. | Undue influence is a mental or moral threat |
Illegal & Unfair Threatening to do an illegal act. | In undue influence the act may not be illegal, it may only be unfair. |
Parties Coercion may be exercised by Or Against the party to the agreement it may also be exercised by or Against some third party. | Undue influence must be exercised by or against the party t the agreement. |
Relationship For concern no specific relationship between the parties is necessary. | For undue influence there must be a specific relationship between the parties. |