What is Undue Influence?

Section 16(1) defines the term ‘Undue influence’ as follows:

“A contract is said to be induced by undue influence where, (i) the relations subsisting between the. parties are such that one of the parties is in a position to obtain an unfair advantage over the other.”

The phrase “in a position to dominate the will of the other” is clarified by the same section under sub-section (2), thus:

Under section 16(2)

- 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,

e.g., the relationship between master and the servant, police

officer and the accused; or

(b)Where he stands in a fiduciary relation to the other. Fiduciary, relation means a relation of mutual trust and confidence. Such a relationship is supposed to exist in the following cases; father and son, guardian and ward, solicitor and client, doctor and patient, Guru (spiritual adviser).and disciple, trustee and beneficiary, etc: or

(c) Where he makes a contract with a person whose mental capacity of is temporarily or penitently affected by reason of age, illness, or mental or bodily distress, e.g., old illiterate persons.

It is to be observed that for proving the use of undue-influence both the elements mentioned above, namely, 

(i) the other party was in a position to dominate, his will, and  

(ii) the transaction was an unfair one, must be established.

Presumption of Undue Influence

Undue influence is presumed to exist under the circumstances mentioned above in sub-clauses (a), (b) and (c). In other words, for example, where the relationship between the contracting parties is that of master and servant, father and son, doctor and patient, solicitor and client, etc., or where one of the parties to the contract is an old illiterate person, there is no need of proving the use of undue influence by the party whose consent was so caused. Merely status of parties is enough to weave the existence of undue influence in these cases. Presump­tion of undue influence is also there, in case of a contract by or with a ‘pardanashin woman.

There is, however, no presumption of undue influence in the following cases:

(i)    Husband and wife (In case of persons engaged to marry, the presumption of undue influence will arise)

(ii)   Mother and daughter

(iii)  Grandson and grandfather.

(iv)   Landlord and tenant.

(v)    Creditor and debtor.

In these cases, undue influence shall have to be proved by the party alleging that undue influence existed.
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