What is Power to set aside contract induced by undue influence? Section 19A of Indian Contract Act 1872
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 seem just.
(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.
Section 2 - Interpretation clause
CHAPTER I THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS
Section 3 - Communication, acceptance and revocation of proposals
Section 4 - Communication when complete
Section 5 - Revocation of proposals and acceptances
Section 6 - Revocation how made
Section 7 - Acceptance must be absolute
Section 8 - Acceptance by performing conditions, or receiving consideration
Section 9 - Promises, express and implied
CHAPTER II CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS
Section 10 - What agreements are contracts
Section 11 - Who are competent to contract
Section 12 - What is a sound mind for the purposes of contracting
Section 14 - Free consent defined
Section 16 - Undue influence defined
Section 18 - Misrepresentation defined
Section 19 - Voidability of agreements without free consent
Section 19A - Power to set aside contract induced by undue influence
Section 20 - Agreement void where both parties are under mistake as to matter of fact