Q. What is the effect of Undue-Influence on an agreement?

Ans.

According to Section 16 (1) Contract Act, Undue influence means when the relations present between the parties one such that one of the party is in position to dominate the will of other and uses that position to get an unfair advantage against the other.

Undue influence makes the agreement voidable.

Example

“A” is the doctor of “B” a patient. He threatens “B” to disclose his disease to the public and enters into an agreement to receive a huge amount from “B”, agreement is voidable.

“A” is the lawyer of “B”. He compels “B” to enter into an agreement for the payment of Rs.1 crore, otherwise he will disclose his business secrets to public. Agreement is voidable at the option of “B”.

Parent & Child, Advocate  & Client, Doctor & Patient, Trustee & Beneficiary, Master & Servant, Financer & Financee.

Conclusion:

Undue-Influence makes the agreement voidable.

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