Principle: A contract induced by 'Undue Influence' is voidable at the option of the party whose consent was so caused, where one party is in a position to dominate the will of the other.
Facts: An elderly patient suffering from severe cognitive illness gifts his entire agricultural estate to his live-in physician, who constantly reminded him that medical treatment would cease without the transfer. Can the patient's heirs challenge the transaction?
Answer and explanation
Correct answer: A. Yes, the doctor-patient relation presumes dominant influence, so undue influence
- Step 1: Under Section 16 of the Indian Contract Act 1872, a contract is vitiated by undue influence where one party is in a position to dominate the will of the other and uses that position to obtain an unfair advantage.
- Step 2: A physician treating a cognitively impaired elderly patient occupies a fiduciary position of dominant influence. Conditioning medical treatment on transferring an entire estate amounts to unconscionable abuse of that dominant position.
- Step 3: The agreement is voidable, and the heirs are entitled to set aside the transfer.
Answer
Yes, because a doctor-patient relationship stands in a fiduciary position of dominant influence, raising a presumption of undue influence.
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