Private Law Theory

ABSTRACT
This paper discusses the doctrine of undue influence under Section 16 of the Indian Contract Act, 1872. The doctrine is important to assure real consent in contracts. While contract law is founded on true consent and fairness to both parties entering into a contract, the reality is that people (for various reasons) are subjected to real imbalances that affect the fairness of consent – power differentials, psychological dependence and undue pressure are all widespread mental realities. The doctrine of undue influence mitigates instances of undue influence and focuses on contexts of trusted relationships, relationships of authority and relationships of trust. The Indian courts have considered the doctrine of undue influence in a breadth of cases and developed the doctrine into a robust means to balance free contracting and equity. Although there is a historical and theoretical pedigree from English common law, the doctrine of undue influence has evolved to satisfy the socio-legal reality of India. It is important and will remain important doctrine because it reinforces fair and ethical agreements, while creating an avenue to prevent exploitative contracts and assurances of fairness on consensual agreements. The paper considers the evolution of the doctrine of undue influence in India, its contemporary use and relevance to contracts in India.

Jaya, Ayushi Jaya, Judicial Interpretation of Undue Influence under Indian Contracts Act 1872 (May 12, 2025).