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Principle: If a Party to a Contract Agrees to It Under Undue Influence of Any Other Party Then the Party Under the Undue Influence May Refuse to Perform in Accordance with the Agreement. - Mathematics

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Consists of legal proposition(s)/  principle(s) (hereinafter referred to as 'principle') and facts. Such principles may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this Section. In other words, in answering these questions, you must not rely on any principle except the principles that are given herein below for every question.  
Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest in the study of law, research aptitude, and problem-solving ability, even if the 'most reasonable conclusion' arrived at may be absurd or unacceptable for any other reason. It is not the objective of this section to test your knowledge of the law.  
Therefore, to answer a question, the principle is to be applied to the given facts and to choose the most appropriate option. 

Principle: If a party to a contract agrees to it under the undue influence of any other party then the party under the undue influence may refuse to perform in accordance with the agreement.

Facts: A, a rich youngster became a member of a religious group and soon he was appointed by P the head of the group as his personal secretary. As per the rules of the group, all officials and staff of the group were supposed to stay in the group’s official premises itself. Some days later, A was asked by P to execute a gift deed in favour of P, in which it was mentioned that all immovable properties in his name are being gifted to P. A was unwilling to execute the deed, but he was forcefully restrained by P and his bodyguards in P’s office and made A sign the gift deed. Soon after this A left the group and refused to hand over the property as agreed to in the gift deed. Is A’s action valid?

Options

  • It is illegal for religious groups to acquire property from its members.  

  • A executed the deed, under compulsion and undue influence, and was right in withdrawing from the contract.  

  • As the gift deed was executed by A, he cannot refuse.  

  • As Gift is also a contract, the consent of A was not obtained by P while executing the deed. 

MCQ
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Solution

A executed the deed, under compulsion and undue influence, and was right in withdrawing from the contract.

Explanation:

A executed the deed under compulsion and undue influence, and was right in withdrawing from the contract. The deed was executed by A who was unwilling, under undue influence, forcefully and under compulsion. A has the right to refuse to perform the deed as it violated the terms of a valid contract. (Mahboob Khan And Ors. vs Hakim Abdul Rahim AIR 1964 Raj 250) 

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Indian Contract Act (Entrance Exams)
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2016-2017 (May) Set 1

RELATED QUESTIONS

In this Question problem consists of a set of rules and facts. Apply the specified rules to the set of facts and answer the question. In answering the following question, you should not rely on any rule(s) except the rule(s) that are supplied for problem. Further, you should not assume any fact other than 'those stated in the problem. The aim is to test your ability to properly apply a rule to a given set of facts, even when the result is absurd or unacceptable for any other reason. It is not the aim to test any knowledge of law you may already possess. 

Rules: 
A. When land is sold, all `fixtures' on the land are also deemed to have been sold.
B. If a moveable thing is attached to the land or any building on the land, then it becomes a 'fixture'. 

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In this Question, the problem consists of a set of rules and facts. Apply the specified rules to the set of facts and answer the question.

Rules 
A. The act of using threats to force another person to enter into a contract is called coercion.
B. The act of using influence on another and taking undue advantage of that person is called undue influence.
C. In order to prove coercion, the existence of the use of threat, in any form and manner, is necessary. If coercion is proved, the person who has been so threatened can refuse to abide by the contract.
D. In order to prove undue-influence, there has to be a pre-existing relationship between the parties to a contract. The relationship has to be of such a nature that one is in a position to influence the other. If it is proven that there has been undue influence, the party who has been so influenced need not enforce the contract or perform his obligations under the contract.

Facts 
Aadil and Baalu are best friends. Aadil is the son of a multi-millionaire business person, Chulbul who owns Maakhan Pharmaceuticals.  Baalu is the son of a bank employee, Dhanraj. One day, Aadil is abducted from his office by Baalu. Chulbul receives a phone call from Dhanraj telling him that if he does not make Baalu the CEO  of Maakhan Pharmaceuticals, Aadil will be killed. Chulbul reluctantly agrees to make the Baalu the CEO.  
 Subsequently, Chulbul and Baalu sign an employment contract.  However, as soon as Aadil is released and safely returns home,  Chulbul tells Baalu that he shall not enforce the employment contract.  Baalu and Dhanraj are not sure as to what is to be done next.

Chulbul is:


Consists of legal proposition(s)/  principle(s) (hereinafter referred to as 'principle') and facts. Such principles may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this Section. In other words, in answering these questions, you must not rely on any principle except the principles that are given herein below for every question.  
Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest in the study of law, research aptitude, and problem-solving ability, even if the 'most reasonable conclusion' arrived at may be absurd or unacceptable for any other reason. It is not the objective of this section to test your knowledge of the law.  
Therefore, to answer a question, the principle is to be applied to the given facts and to choose the most appropriate option. 

Principle: An agreement, the terms of which are not certain, or capable of being made certain, is void.

Facts: Sunder agreed to take Bhola’s penthouse on rent for three years at the rate of rupees 12, 00, 000/­- per annum provided the house was put to thorough repairs and the living rooms were decorated according to contemporary style.


All Contract is a/an .................


All illegal agreements are void, but all void agreements are not illegal.


To form a valid contract, there should be at least .............


An offer stands revoked


.................. is made by words spoken.


................. is a one-sided contract in which only one party has to perform his promise or obligation.


Which article provides for the office of the Attorney General of India?


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