Case Analysis

Presented by,
Ruddy Jacob
Introduction
Undue influence:
A contract is said to be induced by undue influence
where the relationship subsisting between the parties
are such that one of the parties is in a position to
dominate the will of the other, and he uses the
position to obtain an unfair advantage over the other.
Sec 16(1)
Relevance: According to sec 19 & 19(A), if the consent
is caused by coercion, undue influence, fraud or
misrepresentation, the contract is voidable at the
option of the party whose consent was so caused.
Mr. Sabu went to village office for clearing some
issues regarding his property. He met Mr. Vasu,
officer, and ask him for help. Mr. vasu wanted him
to pay an amount of Rs. 50000, said that it will be
a contribution to the chief ministers fund for
charitable activities otherwise he will not get it
cleared. Mr. sabu agreed to pay the money even
if he dont wish and getting his papers cleared. Is
the contract between Mr. Sabu and Mr. Vasu a
valid contract?
Factual analysis
The case is between mr. sabu and village
officer
Village officer asked him to bribe for his
services which is to be free for citizens
Mr. sabu was not ready to pay the money
It is by undue influence mr. vasu tried to
collect the money
Issues
Undue influence by the village officer
Bribery
Validity of the contract?
Is he liable for paying the money

Issue Analysis
The contract is a void contact
The village officer dominate the will of sabu
and is by undue influence
There is no liability in the part of sabu for
paying the money
Decisions
Not to pay the money
File a case against the V.O. for compelling him
to pay the money
Reference
Laws for business
- M.M. Sulphey and Az-har Basheer