BUSINESS ADMINISTRATION
BUSINESS LAW
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Coercion
|
|
|
Undue Influence
|
|
|
Fraud
|
|
|
Mistake
|
Detailed explanation-1: -"Coercion” is the committing, or threatening to commit, any act forbidden by the Indian Penal Code (45 of 1860) or the unlawful detaining, or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement. Explanation.
Detailed explanation-2: -1] Coercion (Section 15) For example, A threatens to hurt B if he does not sell his house to A for 5 lakh rupees. Here even if B sells the house to A, it will not be a valid contract since B’s consent was obtained by coercion. Now the effect of coercion is that it makes the contract voidable.
Detailed explanation-3: -19. Voidability of agreements without free consent.-When consent to an agreement is caused by coercion, 1[***] fraud or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused.
Detailed explanation-4: -Coercion can be defined as an act where force is used as a tool for making a party who is generally unwilling to come into a contract. Undue influence can be defined as an act of influencing the will of a person by another. It is regarded as a criminal offence. It is not regarded as a criminal offence.