Each question consists of legal propositions/ principles (hereinafter referred to as 'principle') and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion. Such principles may or may not be true in the real sense, yet you have to conclusively assume them to be true for the purposes of this section. In other words, in answering the following questions, you must not rely on any principles 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 towards study of law, research aptitude and problem solving ability even if the 'most reasonable conclusion' arrived at may be unacceptable for any other reason. It is not the object of this section to test your knowledge of law.
PRINCIPLE: Two or more persons are said to consent if they agree upon the same thing in the same sense. Consent is said to be free when it is not caused by coercion, or undue influence, or fraud, or misrepresentation, or mistake. When consent to an agreement is caused by coercion, undue influence, fraud or misrepresentation, the agreement is a contract voidable (rescindable or terminable) at the option of the party whose consent was so caused. However, when consent to an agreement is caused by mistake as to a matter of fact essential to the agreement, the agreement is void.
FACTS: 'X’ threatens to gun down 'Y’, if he (‘Y’) does not sell his property worth Rs. 20,00,000 for Rs.1,00,000 only. As a consequence, 'Y' agrees to sell it as demanded by 'X'.
Which of the following derivations is CORRECT?
Correct Answer :
There is a contract between 'X' and 'Y' which voidable at the option of 'Y'.
Solution :
Correct Answer: There is a contract between 'X' and 'Y' which voidable at the option of 'Y'.
Step-by-Step Explanation:
1. Understanding the Legal Principle:
According to the principle provided:
- Consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation, or mistake.
- When consent to an agreement is caused by coercion, undue influence, fraud, or misrepresentation, the agreement is a contract voidable (rescindable or terminable) at the option of the party whose consent was so caused.
2. Analyzing the Facts:
- 'X' threatens to gun down 'Y' unless 'Y' sells his property worth Rs. 20,00,000 for Rs. 1,00,000.
- Threatening someone with physical violence (gunning down) to compel them to enter an agreement constitutes coercion.
- Because of this threat, 'Y' consents and agrees to sell the property. Therefore, 'Y's consent was obtained through coercion.
3. Applying the Principle to the Facts:
- Since 'Y's consent was caused by coercion, the agreement is not void ab initio, but rather forms a contract that is voidable at the option of 'Y' (the aggrieved party whose consent was coerced).
- 'Y' has the legal right to decide whether to enforce the contract or rescind (cancel) it.
Conclusion:
Thus, the correct derivation is that there is a contract between 'X' and 'Y' which is voidable at the option of 'Y'.
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