Distinction between Coercion and Undue influence

Coercion is defined in Section 15 and Undue Influence is defined in Section 16 of the Indian Contract Act, 1872.

Coercion

Undue Influence

a)      It involves the physical force or threat. The aggrieved party is compelled to make the contract against its will. b)     It involves committing or threatening to commit and act forbidden by Indian Penal Code or detaining or threatening to detain property unlawfully. c)     It is not necessary that there must be some sort of relationship between the parties. d)     Coercion need not proceed from the promisor nor need it be the directed against the promisor. e)     The contract is voidable at the option of the party whose consent has been obtained by the coercion or enforce it in a modified form. f)      In case of coercion where the contract is rescinded by the aggrieved party, as per Section 64, any benefit received has to be restored back to the other party.

a)  It involves moral or mental pressure. b)  No such illegal act is committed or a threat is given. c) Some sort of relationship between the parties is absolutely necessary.  d) Undue influence is always exercised between parties  to the contract. e) Where the consent is induced by undue influence, the contract is either voidable or the count may set it aside. f) The court has the discretion to direct the aggrieved party to return the benefit in whole or in part or not to give any such directions.

Courtesy:- Legal Point Foundation