“Undue influence is said to be a subtle species of fraud whereby mastery is obtained over the mind of the victim by insidious approaches and seductive artifices.” Explain.
Find the answer to the mains question of the Law of Contract only on Legal Bites.
Question: “Undue influence is said to be a subtle species of fraud whereby mastery is obtained over the mind of the victim by insidious approaches and seductive artifices.” Explain. [BJS 2018]Find the answer to the mains question of the Law of Contract only on Legal Bites. [“Undue influence is said to be a subtle species of fraud whereby mastery is obtained over the mind of the victim by insidious approaches and seductive artifices.” Explain.]AnswerSection 16 of the Indian Contract...
Question: “Undue influence is said to be a subtle species of fraud whereby mastery is obtained over the mind of the victim by insidious approaches and seductive artifices.” Explain. [BJS 2018]
Find the answer to the mains question of the Law of Contract only on Legal Bites. [“Undue influence is said to be a subtle species of fraud whereby mastery is obtained over the mind of the victim by insidious approaches and seductive artifices.” Explain.]
Answer
Section 16 of the Indian Contract Act defines undue influence. It says,
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 over the other.
Undue influence is a legal term that refers to a situation in which one person exerts an improper influence over another person, causing that person to act in a way that is contrary to their own interests. It is often seen as a subtle form of fraud because it involves a level of manipulation and coercion that is not immediately apparent.
Undue influence is said to be subtle because it often takes the form of insidious approaches and seductive artifices. In other words, the person who is exerting the influence does not use direct threats or force to get their way. Instead, they may use more subtle tactics, such as flattery, persuasion, or emotional manipulation, to gain control over the other person's thoughts and actions.
It was observed by the Privy Council in Someshwar Dutt v. Tribhawan Dutt, (1934) 36 BOMLR 652, that acts of undue influence range themselves under the heads of coercion or fraud.
For example, a person may use their position of authority or trust to influence a vulnerable individual into making decisions that benefit the influencer at the expense of the victim. This could take the form of a financial advisor convincing an elderly client to invest in a risky scheme, or a caregiver pressuring a dependent adult to make changes to their will.
Undue influence is considered a form of fraud because it involves deceiving someone into acting against their own interests. It can have serious consequences for the victim, who may suffer financial loss, emotional distress, or other forms of harm as a result of their actions. As such, it is an important concept in legal and ethical discussions about the responsibilities of those in positions of authority or trust.