Indian Contract Act Section 19A — Power to set aside contract induced by undue influence

CHAPTER II OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS

Commercial / Corporate

Summary

When consent to an agreement is caused by undue influence, the agreement becomes a contract that is voidable at the option of the party whose consent was so caused. This means that the affected party can choose to cancel the contract if they wish.

Any such contract may be set aside either completely, or, if the party who was entitled to avoid it has received any benefit under the contract, it may be set aside on such terms and conditions as the Court considers just. In other words, the Court can decide what is fair when the party seeking to cancel the contract has already gained something from it.

Official Text

When consent to an agreement is caused by undue influence, the agreement is a contract voidable at the option of the party whose consent was so caused. Any such contract may be set aside either absolutely or, if the party who was entitled to avoid it has received any benefit thereunder, upon such terms and conditions as to the Court may seem just. Illustrations