Comprehension

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 obligation under the contract.
Facts: Aadil and Baalu are best friends. Aadil is the son of 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 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.

Question: 1

As per the rules and the given facts, who coerces whom?

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To identify coercion, always look for a clear threat that forces a party to act against their will. Here, Dhanraj's threat fulfills this criterion.
Updated On: Aug 11, 2025
  • Aadil coerces Baalu.
  • Baalu coerces Chulbul.
  • Dhanraj coerces Chulbul.
  • None of the above.
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The Correct Option is C

Solution and Explanation

Step 1: Understand the legal definition of coercion

Rule A: Using threats to force someone into a contract is called coercion.
Rule C: If coercion exists, the contract is voidable by the coerced party.

Step 2: Apply facts to identify who threatened whom

Dhanraj (father of Baalu) threatens Chulbul over a phone call.
The threat: If Chulbul does not make Baalu CEO, Aadil will be killed.
This clearly constitutes a threat under Rule A — hence, coercion.
Chulbul is thus forced to sign the contract under coercion.

Step 3: Eliminate incorrect options

(a) Incorrect — Aadil is the victim, not the coercer.
(b) Incorrect — Baalu is a beneficiary, but the threat came from Dhanraj.
(d) Incorrect — coercion clearly occurred.

% Final Answer \[ \boxed{\text{(c)}} \]
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Question: 2

In the above fact situation:

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Undue influence requires an existing trusted relationship. If consent is obtained due to a threat from a stranger, it’s coercion, not undue influence.
Updated On: Aug 11, 2025
  • There is undue influence exercised by Dhanraj on Baalu.
  • There is undue influence exercised by Aadil on Chulbul.
  • There is no undue influence.
  • None of the above.
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The Correct Option is C

Solution and Explanation

Step 1: Understand what constitutes undue influence (Rule D)

Undue influence requires a pre-existing relationship where one party is in a position to dominate the will of the other.
The influencing party takes advantage of this relationship to obtain consent to a contract.

Step 2: Apply to the facts

Chulbul and Dhanraj — No evidence of a close or dependent relationship.
Chulbul and Aadil — Aadil is a victim, not in a position to dominate Chulbul.
Dhanraj's actions constitute coercion (a threat to life), not undue influence.
No evidence of any relationship of trust or domination — hence, undue influence does not apply.

Step 3: Eliminate incorrect options

(a) Incorrect — No such relationship or influence from Dhanraj on Baalu is described.
(b) Incorrect — Aadil has no influence over Chulbul; he was abducted.
(d) Incorrect — because (c) is correct.

% Final Answer \[ \boxed{\text{(c)}} \]
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Question: 3

Chulbul is:

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If a party is coerced into a contract, especially under threat to life, they are legally entitled to walk away from the contract—even if the coercer is not a signatory.
Updated On: Aug 11, 2025
  • Justified in refusing to enforce the employment contract as Chulbul was coerced by Dhanraj.
  • Justified in refusing to enforce the employment contract as Baalu was complicit in the coercive act.
  • Not justified in refusing to enforce the employment contract as Baalu was an innocent person and has not coerced Chulbul.
  • Both (a) and (b).
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The Correct Option is D

Solution and Explanation

Step 1: Recall Rule C – Coercion

Rule C defines coercion as using threats to force someone into a contract.
The person coerced can refuse to perform the contract.

Step 2: Apply facts

Dhanraj threatened Chulbul that Aadil would be killed unless Baalu was made CEO.
Baalu was directly involved — he abducted Aadil and was complicit in the threat.
Hence, Chulbul’s consent was obtained by coercion and he is justified in refusing the contract.

Step 3: Eliminate wrong options

(a) Correct — Dhanraj used coercion on Chulbul.
(b) Correct — Baalu’s involvement makes it worse.
(c) Incorrect — Baalu was not innocent.

% Final Answer \[ \boxed{\text{(d)}} \]
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Question: 4

Baalu will succeed in getting the employment contract enforced if he can show that:

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In contracts formed by coercion, it doesn’t matter whether the coercer and beneficiary are different people—if consent is forced, the contract is voidable.
Updated On: Aug 11, 2025
  • He is the best friend of Aadil.
  • It was his father, and not he, who used coercion against Chulbul.
  • Chulbul has promised his father to employ him.
  • None of the above.
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The Correct Option is D

Solution and Explanation

Step 1: Rule on Coercion (Rule C)

If a person is forced into a contract due to threats, the contract is not binding.
Even if someone else made the threat, what matters is that the consent was not free.

Step 2: Apply to facts

Chulbul was coerced by Dhanraj (Baalu’s father).
Baalu was complicit — he abducted Aadil. The benefit of the coercion was for Baalu.
Therefore, regardless of who gave the threat, the beneficiary (Baalu) cannot enforce the contract.

Step 3: Eliminate options

(a) Irrelevant — being Aadil’s friend has no legal bearing.
(b) Invalid — beneficiary of coercion cannot claim relief.
(c) Promises made to third parties do not make coerced contracts enforceable.

% Final Answer \[ \boxed{\text{(d)}} \]
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