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Author - Advocate Kashu Shubhamoorthy

Relevance of the doctrine

The law describes the doctrine of undue influence. The laws on undue influence can protect or misused by any contracting party, the same way as any other law. The ideology behind the enactment of laws and regulations is to protect the victim and not deter people from helping one another. 

Importance

Undue Influence is considered the decisive point in making a contract voidable at the discretion of the victim. 

What is this doctrine?

Undue Influence is recognised as using wrong means to obtain something for self-gain. When a person has power to dominate the will of other for wrong selfish purposes then such an act will be considered as committed by Undue Influence. The transaction or contract arising out of Undue Influence is voidable at the option of the victim. 

E.g – ‘A’ requests ‘B’s to sign all his property on ‘A’s name, such an act maybe due to undue influence and the courts will have to consider the facts of the case to decide on the same. 

The key constituents

To establish a case of undue influence, some of the factors which must be considered by the Court are:

1. Is the respondent able to dominate the will of the plaintiff;
2. Does the respondent by dominating or influencing the will of the plaintiff takes unfair advantage;
3. Was the plaintiff not able to exercise free will; 
4. Was the plaintiff discouraged to consult any third person who is an expert and independent of the transaction in question;
5. Was the plaintiff in a vulnerable state while entering into the contract; etc. 

Burden of Proof

The burden of proof is on the party who is in position to dominate the will of the other/active confidence under section 111(b) of the Indian Evidence Act, 1872. 

We must understand that undue influence is required to be proved beyond doubt and to adjudicate on the same some factors need to be considered.

The factors which dismiss the case of undue influence can be:

1. In circumstances where the respondent does not take an unfair advantage;
2. The plaintiff is not in a vulnerable position when entering into the transaction or contract in question;
3. The plaintiff entered into the contract with complete willingness; 
4. The respondent has not taken any advantage for personal gain even if is in a special or fiduciary relationship with the plaintiff; 

If any of the above-mentioned conditions are proved, then the accusation of undue influence holds no ground. While imparting judgment in such cases facts of each case and the evidence apparent must be considered. 

E.g- If ‘A’ discourages ‘B’ to consult his lawyer before ‘B’ bequeaths his party fully to ‘A’, such an act will be considered as undue influence. 

E.g.- ‘A’ bequeaths her whole property in the name of her daughter. As per the facts of the case ‘A’ was mentally and physically healthy and the daughter could not have influenced her mother in any way. Such bequeathing of property by ‘A’ solely to the daughter shall not be considered as a case of undue influence. Judging such a case depends on the facts of each case after hearing both the parties. 

To end with

The way of influencing someone unduly have been defined with examples under law. The relationship which are more prone to undue influence are called fiduciary relationships. The types of relationships which are considered as fiduciary relationship are also well defined under law. 

However, the judiciary and the law makers do not intend to create a condition where people do not help someone in distress due to fear. Everyone and anyone should feel free to reach out and help others in need and not fear legal consequences.