Question

A solicitor sold certain property to one of his clients. The client subsequently alleged that the property was considerably overvalued and his consent was caused by--------------.

• A. Coercion
• B. Misrepresentation
• C. Undue influence
• D. Estoppel

Hint:

Remember the relationships where undue influence is often presumed: Parent-Child, Guardian-Ward, Doctor-Patient, Solicitor-Client, and Spiritual Advisor-Devotee. In transactions between such parties, the dominant party has to prove that the transaction was fair and that the other party gave free and informed consent.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The question describes a transaction between two parties who are in a special relationship—a solicitor (lawyer) and a client. The law recognizes that certain relationships are inherently unequal, where one party is in a position to dominate the will of the other. Consent obtained in such a situation may be vitiated.
Step 2: Detailed Explanation:
Let's analyze the relevant concepts from the Indian Contract Act: \begin{itemize} \item Section 16 (Undue Influence): 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. \item The section explicitly states that a person is deemed to be in a position to dominate the will of another where he stands in a fiduciary relation to the other. The relationship between a solicitor and a client is a classic example of a fiduciary relationship. \item In such cases, if a transaction appears to be unconscionable (like selling an overvalued property), the burden of proving that the contract was not induced by undue influence lies upon the person in the dominant position (the solicitor). \item Coercion involves threats of violence or unlawful detention. Misrepresentation involves an innocent false statement. While misrepresentation could be present, the core issue arising from the solicitor-client relationship is the presumption of undue influence. \end{itemize}
Step 3: Final Answer:
The client's consent was likely caused by Undue influence.