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Complete the wording of Section 16(1) of the Indian Contract Act, 1872. One party is in a position to…

Under Section 16(1) of the Indian Contract Act, 1872, a contract is induced by undue influence when one party is in a position to dominate the other party’s will and uses…

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Complete the wording of Section 16(1) of the Indian Contract Act, 1872. One party is in a position to _____ the will of the other and uses that position to obtain an unfair advantage over the other.

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Answer and explanation

Correct answer A

Under Section 16(1) of the Indian Contract Act, 1872, a contract is induced by undue influence when one party is in a position to dominate the other party’s will and uses that position to obtain an unfair advantage. Mere persuasion or influence does not suffice under this provision. The statute uses “dominate,” rather than “influence,” “change” or “affect.”

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Option A

Section 16(1) requires a position to dominate the other party’s will and use of that position to obtain an unfair advantage.

Option B

Mere persuasion or influence does not constitute undue influence under Section 16(1) unless one party is in a position to dominate the will of the other.

Option C

Mere persuasion or influence does not constitute undue influence under Section 16(1) unless one party is in a position to dominate the will of the other.

Option D

Mere persuasion or influence does not constitute undue influence under Section 16(1) unless one party is in a position to dominate the will of the other.

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