Page 17 - 01. Indian Contract Act, 1872

(iii) Fraud

(iv) Misrepresentation
(v) Mistake

In the absence of free consent, contract is usually voidable at the option of the party
whose consent in not free.

(I) Coercion
It is the committing, threatening to commit any act forbidden by the Indian penal code

(IPC) or the unlawful detaining, or threatening to detain any property to the prejudice of
any person, whatever, with the intention of causing any person to enter into an

agreement”.

(ii) Undue influence

 A contract is said to be induced by „ undue 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 of the other.

 It has following two elements:
(i) a dominant position

(ii) the use of it to obtain as unfair advantage

 A person is deemed to be dominate the will of another if

(i) he holds a real or apparent authority over the other, or

(ii) he stands in a fiduciary relation to the other, or
(iii) 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.

 Relationships that are presumed to have undue influence includes:
(i) Parent and Child

(ii) Guardian and ward

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