UNDUE INFLUENCE

by • 29/05/2012 • B.com part 2 Business LawComments (0)344

 

The term “undue influence” means dominating the will of the other person to obtain an unfair advantage over the other. According to Section 16 (1), a contract is said to be induced by undue influence:

a-      Where the relations subsisting between the parties are such that one of them is in a position to dominate the will of the other.

b-     The dominant party uses that position to obtain an unfair advantage over the other.

Example:

A devotee gifted her property to her spiritual guru to secure benefits to her soul in next world. It was held that spiritual guru was in position to dominate the will of devotee.

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