Undue influence Contract

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Undue influence Contract

Unread postby Admin » Sat Aug 04, 2012 10:36 am

Undue influence Contract

A Contract is said to be induced by undue influence where the relations subsisting between the parties are suc 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.

In particular and without prejudice to the generality of the foregoing principle 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 or where he stands in a fiduciary relation to the other
(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.

where a person who is in a position to dominate the will of another enters into c contract with him and the transaction appears on the face of proving that such contract was not induced by undue influence shall lie upon the person in position to dominate the will of the other.

Powers to set aside contract induced by Undue Influence
when consent to an agreement is cause by undue influence the agreement is contract voidable at the option of the party whose consent was so caused.
Any such contract may be set aside absolutely or if the party who was entitled to avoid it has received any benefit thereunder upon such terms and conditions as to the court may seem just.
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