Business Law

Difference Between Coercion And Undue Influence

Difference Between Coercion And Undue Influence – Hello friends, You are again welcomed, before discussing difference, we will understand the meaning of both Coercion And Undue Influence.

Coercion – It means using force to compel a person to enter into a contract. So force or threats are used to obtain the consent of the party under coercion, i.e it is not free consent.

Undue Influence – Section 16 of the Act contains the definition of undue influence. It states that when the relations between the two parties are such that one party is in a position to dominate the other party, and uses such influence to obtain an unfair advantage of the other party it will be undue influence.

Difference Between Coercion And Undue Influence

Sr. No.BasisCoercionUndue Influence
1MeaningConsent is obtained by use of force or a threat to use force. It includes detaining or threatening to detain somebody’s property illegally.Consent is obtained by one party misusing his dominating position or by moral influence.
2TypeIt is mainly of physical character and implies the use or threat to use force.It is of moral character and implies the use of moral force or mental pressure.
3Relation Of PartiesThere needs to be no definite relation between the parties.There needs to be a definite fiduciary, legal or authoritarian relation between the parties.
4UsuageCoercion is used by the promisee against the promisor or somebody near and dear to the promisor.Can only be used by the promisee against the promisor and nobody else.
5EffectThe contract is voidable at the option of the aggrieved party.The contract can be set aside completely or be void on the terms set by the court.

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