SIMILARITYCOERCION & UNDUE

INFLUENCEFORCE INVOLVED

Both involve a kind of pressure upon a person to make an agreement.

FLAW IN CONSENT

Both cause a flaw in the consent and thereby make the contract voidable.

THIRD PARTY

A third party may exercise coercion or undue influence on one of the parties to the contract.

BASIS COERCION UNDUE INFLUENCE

NATURE OF ACT

Consent obtained by committing, or threatening to commit, any act forbidden by the Indian Penal Code.

Consent obtained by dominating the will of the other.

TYPE OF FORCE

Use of physical or violent force.

Use of moral or mental pressure.

CRIMINAL LIABILITY

Involves criminality giving rise to possible criminal prosecution also.

No such criminality involved.

PRE-EXISTING RELATIONSHI

P

Pre-existing relationship between the parties is not required.

Pre-existing relationship between the parties is necessary.

RESTITUTION

If contract rescinded, the affected party has to restore any benefits received, under Sec. 64, to the other party.

If contract rescinded, the affected party may or may not return the benefit, under Sec. 19A, as the court may find it just.

THIRD PARTYCan be directed against a third party also.

Must be directed against the party to the contract only.

PRESUMPTION

No presumption of coercion in any case.

Undue influence presumed by law in some cases.

COERCION vs UNDUE INFLUENCE

From the foregone discussion, we conclude that :

The CONSENT of a person is said to be free if it is not caused by any kind of fear or any kind of induced ignorance. Also, Coercion and Undue Influence are the main two sources of fear that lead to a contract being a Voidable Contract at the option of the affected party.

Moreover, though undue influence is considered as a subtle form of coercion, but the former varies from coercion in a number of ways as it is more of a mental pressure than any physical threat. But INDIAN CONTRACT ACT, 1872 provides fair support to the weaker parties in both the cases.