business law. possibility of undue influence under certain cases there is no possibility of undue...

Business law

Possibility of Undue Influence under certain casesThere is no possibility of undue influence b/w

husband and wifeBut it can arise in certain cases…..Where an illiterate wife who could only sign

mortgaged her properties to a creditor of her husband

It was held that she was under undue influence.

Possibility of Undue Influence under certain casesThere is no possibility of undue influence b/w

husband and wifeBut it can arise in certain cases…..Where an illiterate wife who could only sign

mortgaged her properties to a creditor of her husband

It was held that she was under undue influence.

There is possibility for undue influence b/w persons engaged to marry

The person who dominates others, can refuse his domination

But he should prove that the other person had independent mind set while entering into the contract.

Contract with pardah-nishin women (screened women like muslims) are presumed to be made of under undue influences unless the other party proves that,,,

The terms were fully explained to her and she understood them.

Fraud or willful misrepresentationAccording to section 17 “fraud means,1) False representation or declaration or active

concealment2) A promise made without any intention of

performing it3) Any other act fitted to deceive4) Any such act or omission declared as fraud

by law

Essential elements of fraudThere must be a false representation or

declaration or active concealment.Peek vs Gurney The non-disclosure of a document in the

prospects issued by a company created a good impression among the public about its prosperity. It was held that non-Disclosure amounted to fraud

It must be related to fact and not to opinionIt must have been made without belief in its

truth,It must have been made with a view to induce

the other party to act upon itThe party must have been mislead and

suffered a loss.