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Undue Influence

Undue Influence

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Undue Influence

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  1. Undue Influence A contract is said to be induced by undue influence where (i ) one of the parties is in a position to dominate the will of other and (ii) he uses this position to obtain an unfair advantage over the other.

  2. Undue Influence Presumptions: Where one party holds a real or apparent authority over the other or where he stands in a fiduciary relationship to the other. Fiduciary relationship fiduciary relationship means a relationship of mutual trust and confidence.

  3. Undue Influence Such a relationship is suppose to exist in the following cases : Father and son. Solicitor and client, doctor and patents, Preceptor and disciple etc.

  4. Consequence of undue influence This is a voidable aggrement : • Aggrieved party can avoid the agreement Or set aside the aggrement • Can insist to perform the contract

  5. Misrepresentation Representation is a statement or assertion made by one party to the other, before or at the time of the contract, regarding some fact relating to it. Misrepresentation arises when the representation made is inaccurate but the inaccuracy is not due to desire to defraud the other party.

  6. Misrepresentation Actually there is no intention to deceive to others.

  7. Consequences Misrepresentation • Aggrieved party can avoid the agreement • Can insist to perform the contract. • He shall be put in the position in which he would have been if the representation made had been true.

  8. Fraud. The term fraud includes all acts committed by a persons with a view to deceive another person. To deceive means to induce a man to believe that a things is true which is false.

  9. Consequences of Fraud. • Aggrieved party can avoid the agreement • Can insist to perform the contract. • He shall be put in the position in which he would have been if the representation made had been true. • The aggrieved party can sue for damage. Fraud is a civil wrong. So compensation is payable.