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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

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

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A. When land is sold, all `fixtures' on the land are also deemed to have been sold.
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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.

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A. A minor is a person who is below the age of eighteen. However, where a guardian administers the minor's property the age of majority is twenty-one.
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C. In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that (he minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation.

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Which of the following is correct?


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A contract in which, under the terms of a contract, one or both the parties have still to perform their obligations in the future is known as


A contract in which, under the terms of a contract, nothing remains to be done by either party is known as


An offer and its acceptance is the basic requirement of an agreement and as per this requirement an offer by one party


The Law of Contract is nothing but ...............


The communication of a proposal is complete when it comes to


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


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