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Question:

A student was induced by his teacher to sell his brand new car to the latter at less than the Purchase price to secure more marks in the examination. Accordingly, the car was sold. However, the father of the student persuaded him to see his teacher. Whether the student can sue the teacher..?

Answer:

• Yes, A can sue his teacher on the ground of undue influence under the provisions of the Indian Contract Act, 1872. 

• According to section 16 of the Indian Contract Act, 1872, “A contract is said to be induced by ‘undue influence’ where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and he uses that position to obtain an unfair advantage over the other”. 

• A person is deemed to be in a position to dominate the will of another:

• (a) Where he holds a real or apparent authority over the other; or 

• (b) Where he stands in a fiduciary relationship to the other; or 

• (c) Where he makes a contract with a person whose mental capacity is temporarily or permanently affected because of age, illness or mental or bodily distress, for example, an old illiterate person. 

• A contract brought as a result of coercion, undue influence, fraud or misrepresentation would be voidable at the option of the person whose consent was caused.