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Commercial Law




                    Notes



                                      Case Study    Threat to commit suicide-Does it amount to coercion?

                                          he question whether a threat to commit suicide amounts to coercion arose in Chi k
                                          ham Amiraju v. Seshamma, (1917) 41 Mad. 33. In this case, a person held out a threat
                                     Tof committing suicide to his wife and son if they did not execute a release in favour
                                     of his brother in respect of certain properties. The wife and son executed the release deed
                                     under the threat. Held, “the threat of suicide amounted to coercion within Sec. 15 and the
                                     release deed was, therefore, voidable.” In another case. Purabi Bannerjee v. Basudev MukerJee,
                                     A.I.R. (1969) Cal. 293, it was observed that “one committing suicide places himself or
                                     herself beyond the reach of the law, and necessarily beyond the reach of any punishment
                                     too. But it does not follow that suicide is not forbidden by the Penal Code. Sec. 306 of the
                                     Penal Code punishes abetment of suicide. Sec. 309 punishes an attempt to commit suicide.
                                     Thus suicide as such is no crime, as indeed, it cannot be. But its attempt is; its abetment too
                                     is. So, it may very well be said that the Penal Code does forbid suicide.”
                                     As such, a threat to commit suicide amounts to coercion.
                                     Duress. In the English Law, the near equivalent of the term ‘coercion’ is ‘duress’. Duress
                                     involves actual or threatened violence over the person of another (or his wife, parent, or child)
                                     with a view to obtaining his consent to the agreement. If the threat is with regard to the
                                     goods or property of the other party, it is not duress.

                                   5.1.2 Meaning of Undue Infl uence (s.16)

                                   Undue influence consists in the improper exercise of power over the mind of one of the contracting


                                   parties by the other. 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 uses that position to obtain an unfair advantage over the other.

                                         Example: A, a man enfeebled by disease or age, is induced by B’s influence over him as his

                                   medical attendant to agree to pay B an unreasonable sum for his professional services, B employs
                                   undue infl uence.

                                   Presumption of undue influence as regards persons in particular relationships. After reciting the

                                   general principle of undue influence, s.16 lays down rules of presumption as regards persons
                                   in particular relations. It reads: A person is deemed to be in a position to dominate the will of
                                   another: (i) where he holds a real or apparent authority over the other or where he stands in

                                   a fiduciary relation to the other or (ii) where he makes a contract with a person whose mental
                                   capacity is temporarily or permanently affected by reason of age, illness or mental or bodily
                                   stress. Some of the relationships which raise a presumption of undue influence are: (a) parent and

                                   child; (b) guardian and ward; (c) doctor and patient; (d) spiritual guru and disciple; (e) lawyer
                                   and client; (f) trustee and beneficiary. However, the presumption of undue influence can be



                                   rebutted by showing that the party said to have been influenced had independent legal advice of
                                   one who had full knowledge of the relevant facts.
                                         Example: A Hindu, well advanced in age, with the object of securing benefits to his soul

                                   in the next world, gave away his whole property to his spiritual guru. Undue infl uence was
                                   presumed.
                                   There is no presumption of undue influence in the relationships between (i) husband and wife;

                                   (ii) master and servant; (iii) creditor and debtor; (iv) landlord and tenant.




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