Undue Influence for CLAT - Practice Questions & MCQ

Read the following passage and answer the question.
The term ‘Undue Influence’ has been defined under Section 16 of the Indian Contract Act, 1872. According to Section 16 of the Indian Contract Act, 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. In particular and without prejudice to the generality of the foregoing principle, a person is deemed to be in a position to dominate the will of another— Where he holds a real or apparent authority over the other, or where he stands in a fiduciary relation to the other; or Where he makes a contract with a person whose mental capacity is temporarily or permanently affected because of age, illness, or mental or bodily distress. Where a person who is in a position to dominate the will of another, enters into a contract with him, and the transaction appears, on the face of it or the evidence adduced, to be unconscionable, the burden of proving that such contract was not induced by undue influence shall be upon the person in a position to dominate the will of the other. Nothing in the subsection shall affect the provisions of section 111 of the Indian Evidence Act, 1872 
Essentials of Undue Influence are:
a) The person in the dominant position:
A person who is in a dominant position in relation to the other party can hold authority over the other and make the other party agree. Such consent is said to be obtained from Undue influence.

b) Real or Apparent Authority:
For example, an employer or manager may have any authority over his employees or subordinates. In such a situation, undue advantage can be taken by the person holding authority.
c) Fiduciary Relationship:
A relationship based on trust is known as a fiduciary relationship. The principle of undue influence applies when confidence is reposed or betrayed. Some of examples of fiduciary relationships are parent and child, husband and wife, master and servant, etc.
d) The person in mental or bodily distress
The law has protected those persons who are in mental and physical distress due to illness, age, etc. Illustration (b) of Section 16 states that if a man who is sick is induced by a medical attendant to pay an unreasonable amount for his services, then the medical attendant has exercised undue influence. An agreement is voidable at the option of the party whose consent has been obtained from undue influence under Section 19 A of the Indian Contract Act, of 1872.
Question :
A doctor convinces a mentally ill patient to sign a contract that greatly benefits the doctor. Which principle of 'undue influence' is demonstrated in this scenario?

Read the following passage and answer the question.
The term ‘Undue Influence’ has been defined under Section 16 of the Indian Contract Act, 1872. According to Section 16 of the Indian Contract Act, 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. In particular and without prejudice to the generality of the foregoing principle, a person is deemed to be in a position to dominate the will of another— Where he holds a real or apparent authority over the other, or where he stands in a fiduciary relation to the other; or Where he makes a contract with a person whose mental capacity is temporarily or permanently affected because of age, illness, or mental or bodily distress. Where a person who is in a position to dominate the will of another, enters into a contract with him, and the transaction appears, on the face of it or the evidence adduced, to be unconscionable, the burden of proving that such contract was not induced by undue influence shall be upon the person in a position to dominate the will of the other. Nothing in the subsection shall affect the provisions of section 111 of the Indian Evidence Act, 1872 
Essentials of Undue Influence are:
a) The person in the dominant position:
A person who is in a dominant position in relation to the other party can hold authority over the other and make the other party agree. Such consent is said to be obtained from Undue influence.

b) Real or Apparent Authority:
For example, an employer or manager may have any authority over his employees or subordinates. In such a situation, undue advantage can be taken by the person holding authority.
c) Fiduciary Relationship:
A relationship based on trust is known as a fiduciary relationship. The principle of undue influence applies when confidence is reposed or betrayed. Some of examples of fiduciary relationships are parent and child, husband and wife, master and servant, etc.
d) The person in mental or bodily distress
The law has protected those persons who are in mental and physical distress due to illness, age, etc. Illustration (b) of Section 16 states that if a man who is sick is induced by a medical attendant to pay an unreasonable amount for his services, then the medical attendant has exercised undue influence. An agreement is voidable at the option of the party whose consent has been obtained from undue influence under Section 19 A of the Indian Contract Act, of 1872.
Question :
Which of the following relationships is NOT an example of a fiduciary relationship?