The following are the points of difference between the two.
a. Coercion
1. Nature
Coercion is a physical threat to property or person.
2. Illegal & Unfair
Coercion involves doing or threatening to do an illegal act.
3. Penal Action
In coercion, penal is also taken against guilty party.
4. Parties
Coercion may be exercised by or against the party to the agreement. It may also be exercised by or against some third party.
5. Relationship
For coercion no specific relationship between the parties is necessary.
6. Refund of Benefit
In coercion the aggrieved party has to refund the benefit, received from the other party.
7. Effect
In coercion, the contract is voidable at the option of aggrieved party.
8. Punishment
It involves criminal liability.
b. Undue Influence
1. Nature
Undue influence is a mental or moral threat.
2. Illegal & Unfair
In undue influence the act may not be illegal, it may be unfair.
3. Penal action
In undue influence, no penal action is taken against guilty party.
4. Parties
Undue influence must be exercised by or against the party to the agreement.
5. Relationship
For undue influence there must be a specific relationship between the parties.
6. Refund of Benefit
In undue influence, the court may direct the aggrieved party to refund the benefit, received from the other party.
7. Effect
In undue influence, the contract is voidable or the court may cancel or enforce it in a modified form.
8. Punishment
It does not involve criminal liability.