New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    According to the Contract Act under what circumstances

    is a person deemed to be in a position to dominate the will of another?
    A When the person holds real or apparent authority over another and when making a contract with someone whose mental capacity is affected due to age or illness Correct Answer Incorrect Answer
    B When the person stands in a fiduciary relation to another and when making a contract with someone regardless of their mental or bodily condition Correct Answer Incorrect Answer
    C When the person has general authority and stands in a fiduciary relationship, or when making a contract with someone whose mental capacity is impaired Correct Answer Incorrect Answer
    D When the person holds authority and the other party is aware of their mental or bodily distress Correct Answer Incorrect Answer
    E When the person does not have the authority or stands in a fiduciary relationship Correct Answer Incorrect Answer

    Solution

    Section 16.“Undue influence” defined (2) 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— (a) where he holds a real or apparent authority over the other, or where he stands in a fiduciary relation to the other; or (b) where he makes a contract with a person whose mental capacity is temporarily or permanently affected by reason of age, illness, or mental or bodily distress.

    Practice Next

    Relevant for Exams: