Difference Between Coercion And Undue Influence

When It Comes to Making Contracts or Agreements, Both Parties must give their Consent Freely and Agree with the Contract. Sometimes, these Contracts may be Compromised due to Coercion or Undue Influence. Both seem similar to Breaking the Contract but have a very Distinct Meaning, which is Important to Understand. Coercion and Undue Influence are both the most Crucial Legal Concepts in the Contract.

Coercion Refers to when someone uses Threats or Forces Another Party to do Something Against their will by Creating Fear for the Contract. On the other hand, undue Influence Refers to when someone uses their Close Relationship or Trust to Pressure Another Party to Make Decisions that Benefit them.

Understanding both Terms is Essential to know under which Circumstances an Agreement is Created. However, Many people don't know about Coercion and Undue Influence. Don't worry!

In this article, we will explain everything about Coercion and Undue Influence, as well as their Features and Key Differences in Detail.

What Is Coercion?

Coercion Refers to Forcing One Party to Agree on a Contract by using Threats or Intimidation.

As per Section 15 of the Indian Contract Act, 1872, "Coercion is defined as Committing or Threatening to Commit, Any Act Forbidden by the IPC or Unlawfully Threatening to Detain any Property to cause Someone to enter into An Agreement."

Coercion involves Threats of Harm, Illegal Acts, or Violence to make a person feel Afraid or Pressured to Agree on a Contract with that Party, which Normally doesn't Agree.

All those Contracts formed under Coercion are Voidable, and the Party has the Option to Enforce or Cancel the Contract by Proving Coercion.

Overall, Coercion, as per Section 15, is the Unlawful use of Threat or Violence to Agree to Someone's Contract against their Will, and that makes the Agreement Legally Questionable and Voidable.

Features Of Coercion

Here are Some Key Features of Coercion:

• Loss of Free Choice: The Main Aim of Coercion is to take away the Person's Freedom to Make Decisions by using Verbal Threats, Blackmail, or Actual Harm.
• Lack of Voluntary Consent: This Means when Someone Agrees to the Agreement Against their Will by Force or Pressure.
• Violation of Rights: Coercion also goes against a Person's Rights and Freedom and Forces them to make decisions against their Own Preferences and Values.
• Use of Force or Threats: This Refers to when Someone Gets Threats, Intimidation, or Physical Force to Make a Decision or Agreed Contract via Blackmail, Actual Harm, or Verbal Threats.
• Unlawful And Ethically Wrong: It's Considered both Illegal and Unethical because it Violates the Person's Freedom and Fairness.
• Potential Legal Consequences: The Person who used Coercion to Force someone can Lead to A Criminal Offense and might Face Legal Penalties.
• Invalid Contracts: If Agreements are made Under Coercion, then they are often Invalid, and the Party has the Right to Reject or Cancel the Contract because it goes against their Will. To understand more about what makes a contract valid or invalid, check out our detailed guide on Is My Contract Valid?."
• Negative Emotional Impact: Sometimes Coercion can cause Emotional or Psychological Harm, which Includes Fear, Anxiety, and Helplessness.
• Power Imbalance: Coercion also Involves a Situation when One Party has more Power over the other, and it can Force Physically, Emotionally, or Socially to Control someone's Decisions.
• Imposition of Fear or Harm: Sometimes Coercion Creates Fear by Threatening or showing them Negative Consequences if a Person doesn't Comply with the Agreement. The Fear that Controls a Person comes Under Coercion.

What Is Undue Influence?

Undue Influence refers to when someone is using their power or Trust to Unfairly affect someone's decision. However, it's not like Coercion, which involves Threats or Force. Undue Influence is using Psychological or Emotional Pressure to take advantage of the Relationship to Change Decisions.

In Such Cases of Undue Influence, One of the dominant parties, like a Lawyer or Doctor, can use their power to Manipulate Someone's Decisions who is dependent on them. They don't Threaten or Force someone but Politely use Psychological Techniques to Convince them to Make Their Decision.

For Example - A Doctor can easily Convince their Patient to go for Treatment whether it's required or not, and a Lawyer can use their client's trust to agree to any agreement.

Undue Influence is all about the power to influence someone who is weaker and unable to make independent decisions. However, if someone finds that they were undue influence and can provide it, then the Agreement or Contract can be Voidable or Canceled.

Features Of Undue Influence

Here are some Key Features of Undue Influence:

• Lack of Independent Judgment: When a person lacks independent decision-making ability, then someone else can easily influence their decisions without any pressure.
• Ethical and Legal Concerns: Undue influence is not just unfair but also a very serious legal issue. It can exploit someone's trust or dependence, and if someone breaks the law, then it can lead to Legal Consequences.
• Power Imbalance: Undue influence usually happens because someone has more power than others, and they can influence a weaker person's decisions without any Force, Just with Manipulation and Psychological Tactics.
• Manipulation of Trust or Confidence: It occurs when someone takes advantage of trust to control someone's decisions and unfairly uses their position.
• Exploitation of Vulnerability: Undue influence mostly impacts those people who are weak and not independent enough to make decisions. In such cases, the person with more power will take advantage and influence the weaker person's decisions.
• Presumption of Invalidity: If undue influence is proven, then the person has the right to cancel the agreement and consider it invalid because it was made unfairly.
• Ethical and Legal Concerns: Undue influence is problematic because it can exploit someone's trust and is Legally considered a dispute.
• Focus on Influence: Undue influence doesn't involve any kind of threats or physical force. Instead, it's just taking advantage of good relationships with weaker people to Emotionally Influence and change their decisions for their benefit.
• Exploitative Outcome: The main aim of undue influence is to achieve results that benefit the influencer no matter what the expense person needs to bear who is being influenced.
• Unfair Advantage: It's an unfair advantage that influence will get in the situation when a weaker person doesn't have the power to make independent decisions.

Difference Between Coercion And Undue Influence

Here’s the key difference between coercion and undue influence:

How Is Consent Obtained By Coercion?

When consent is obtained by coercion, it means someone is trying to forcefully agree on something that is against the person's will and using threats or pressure to convince. In such a case, a weaker person needs to prove that someone is treating and harming them to make them agree on something like an agreement or contract, and it's completely against their will. This helps to prove that the agreement is invalid and the person has the right to cancel it.

How Is Consent Obtained By Undue Influence?

When consent is obtained by Undue Influence, it means someone has taken advantage of their position or Trust to unfairly Conveniently agree on something. This often happens when someone Superior has more power than they use Psychological Tactics and Emotional Influence to Manipulate the weak person's decisions for their own benefit. In such cases, the person needs to prove that the advantage of trust has been taken for Convincing the Agreement and not because of their choice. This will give the person the Right to Cancel the Agreement.

Final Thoughts

When it comes to Agreement or Contract, Coercion, and Undue Influence these Two Terms play a Crucial Role, and Knowing about them is essential for making the Right Decision and Evaluating Contracts. By knowing the clear difference between Coercion and Undue Influence, a person can ensure that the Agreement is made fairly and Legally or Identify if the Agreement is made under the Influence or Coercion. We hope this Article helps you Understand the Coercion and Undue Influence and the key difference between them. So, if you suspect any Contract that was made under Coercion or undue Influence, then you can seek legal advice to address the issue.

FAQ's

Q. Are Coercion And Undue Influence Easily Detectable?

Coercion can be easily detectable because it is a clear sign of threats and force. On the other hand, undue influence is harder to spot because it involves someone Trustworthy and requires careful examination to know the relationship and circumstances.

Q. Can Coercion And Undue Influence Occur In Various Contexts?

Yes, there are various contexts where coercion and undue influence occur, including relationships, workplaces, legal agreements, and other situations.

Q. How Can Coercion Or Undue Influence Be Identified?

Correction can be identified by direct threats or force. At the same time, undue influence will require some psychological tactics and manipulation to exploit trust.

About The Author:

Adv. Sudhanshu Sharma, a newly enrolled member of the Delhi Bar Council. He is quickly establishing himself in the legal field through his work with Red Diamond Associates, currently working alongside Mr. Piyush Gupta, Standing Counsel for the Government of India (Ministry of Home Affairs), Adv. Sharma is gaining valuable experience in handling high-profile legal matters. His diverse interest across all areas of law, combined with a fresh perspective, positions him as a passionate advocate for justice.