"The law draws a distinction between coercion and undue influence. Coercion in the execution of a contract occurs when there is a physical compulsion of the person. In contrast, undue influence may exist without violence or threats of violence against the victim." In the light of this statement, distinguish between coercion and undue influence referring to relevant provisions and presumptions raised under the Indian Contract Act, 1872.
The statement accurately distinguishes coercion and undue influence, both of which vitiate free consent under the Indian Contract Act, 1872.
Coercion (Section 15):
Coercion involves committing or threatening to commit acts forbidden by the IPC, or unlawfully detaining or threatening to detain property, intending to compel a person into an agreement. It typically involves physical force, threats, or illegal detention. No pre-existing relationship is required; it can occur between strangers. The act must be prohibited by law, and the party alleging coercion bears the onus of proof.
Undue Influence (Section 16):
Undue influence arises when a person in a position to dominate another’s will uses that power to secure an unfair advantage. It involves moral or psychological pressure rather than physical threats. A pre-existing relationship of trust or authority—such as parent-child, doctor-patient, or guru-disciple—is essential. The act itself may not be criminal. Sections 16(2) and (3) create a legal presumption: if a dominant party gains an unfair advantage over a weaker party, undue influence is presumed, shifting the burden of proof to the dominant party. Mannu Singh v. Umadat Pande (1918) illustrates undue influence via exploitation of trust.
Comparison:
Both coercion and undue influence render a contract voidable (Section 19). Coercion relies on direct threats or unlawful acts, while undue influence subtly exploits a relationship of power or trust to gain an unfair benefit. The distinction lies in the method of pressure and the necessity of a pre-existing relationship.
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