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Presumption of undue influence can be raised in cases of:
Contract with pardanashin lady
Contract with minor
Relationship of parties being such that one party is in a position to dominate the will of the other
Unconscionable bargains
Section 16 of Indian Contract Act - "Undue influence" defined. (1) A contract is said to be induced by "under 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. 10(2) In particular and without prejudice to the generally of the foregoing principle, a person is deemed to be in a position to dominate the will of another- (a) where he hold 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. (3) 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 be upon the person in a position to dominate the will of the other. Nothing in the sub-section shall affect the provisions of Section 111 of the Indian Evidence Act, 1872.
By: Parvesh Mehta ProfileResourcesReport error
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