Section 19A - Power to set aside contract induced by undue influence : Indian Contract Act
What is Power to set aside contract induced by undue influence? Section 19A of Indian Contract Act
Section 19A of Indian Contract Act 1872 : "Power to set aside
contract induced by undue influence"
19A. 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
(a) A's son has forged B's name to a promissory note. B, under
threat of prosecuting A's son, obtains a bond from A for the
amount of the forged note. If B sues on this bond, the Court may
set the bond aside.
(b) A, a moneylender, advances Rs. 100 to B, an
agriculturist, and, by undue influence, induces B to execute a
bond for Rs. 200 with interest at 6 per cent per month. The
Court may set the bond aside, ordering B to repay Rs. 100 with
such interest as may seem just.