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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.
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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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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 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.
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