What is the difference between Coercion and Undue Influence?

Coercion

1. Coercion is defined in Sec. 15

2. Coercion means compelling a person to enter into a contract by committing or thartening to commit an unlawful act.

3. Coercion is a physical threat.

4. Coercion involves doing or threating to do an illegal act.

5. In case of coercion not only the agreement is voidable but also that party may be punished.

6. Coercion may be exercised against party to the agreement or a third party. It may also be exercised by a party to the agreement or by a third party.

7. For coercion no special relationship between the parties is necessary.

8. In case of coercion burden of proof that coerion was exercised is on the aggrived party.

Undue Influence

1. Undue Influence is defined in Sec. 16

2. Undue influence means inducing a person to enter into an agreement by moral or mental threat.

3. Undue influence is a moral or mental threat.

4. Undue influence is a moral or mental threat.

5. In case of undue influence ordinarily, there is no penal action only the agreement will be voiable at the option of the aggrieved party.

6. Undue influence must be exercised by or against the party to the contract.

7. For undue influence a special relationship must be there e.g., master and servent, doctor and patient, etc. If there is no such relationship, then one of the parties should be in a position to dominate the will of the other party.

8. In case of the undue influence burden of proof that undue influence was not exercised will be on the party who was in dominating position.