4

The Indian Contract Act, 1872: Free Consent

One of the essential conditions of a valid contract is that it should be made out of free consent of the parties. It means free consent if important to determine the validity of a contract. First we will understand consent and thereafter free consent.

4.1 MEANING OF A CONSENT—SECTION 13

Two persons are said to consent, when they agree upon the same thing in the same sense. It is also known as consensus-ad-idem, which means identity of mind. Salmond describes it as an error in consensus. Absence of consent means agreement is void.

4.2 FREE CONSENT—SECTION 14

A consent is said to be free, when it is not obtained by

1. Coercion—Section 15
2. Undue influence—Section 16
3. Fraud—Section 17
4. Misrepresentation—Section 18
5. Mistake—Sections 20, 21 and 22

When the consent is there but it is not free, Salmond describes it as error in causa. In such a case, the contract is voidable at the option of one party.

4.3 COERCION

It means any act forbidden (prohibited) by the Indian Penal Code (IPS) or the detention or threat to detain the property. It may be noted that killing or beating another person and interfering in the personal freedom of another person are forbidden by the IPC. The English law uses the term ‘duress’ for coercion.

The threat to commit suicide is coercion. As per the IPC, attempt to commit suicide is offence but committing suicide is not an offence.

Examples

1. A threatens to kill B, if B does not agree to sell his property to A. B’s consent is obtained by coercion.
2. D threatens to kill A if he does not sell his house to B at a very low price. Even if D is a stranger to the transaction between A and B, the agreement is caused by coercion.
3. A Hindu gentleman died leaving his young wife. The relatives of the deceased threatened the widow that they would not allow to remove the dead body for cremation unless she adopted a boy to her husband. The widow signed the adoption papers. Held, the threat amounted to coercion and the consent was not free.

The IPC need not to be in force in the place where coercion is done. If A threats B on high seas, where the IPC is not applicable, it is still regarded as the coercion. The purpose of coercion is to compel a person to enter into a contract forcefully.

It is not necessary that a threat is given by the party to the contract only. The coercion may be exercised by the party to contract or by any third person.

Example

If A wants to enter into contract with B but he engage D to give threat to B. It is also case of coercion if D gives threat to B.

The coercion may be directed against the party to contract or against the other person. Threat of life or any other threat creating danger to life, if given to a family member or relative or friend of the party also amounts as the coercion.

Example

A gives threat to B that if he will not enter into contract with him, he will kill B’s wife. It is also coercion.

When the coercion is employed, a contract becomes voidable at the option of the aggrieved party, and any benefit received by the other party under the contract must be paid back. If the aggrieved party has suffered from any loss, he can recover the loss from the defaulting party.

4.4 CERTAIN THREATS DO NOT AMOUNT TO COERCION

Every kind of threat is not regarded or said as coercion. The only threat which is an offence is considered as the coercion. Therefore, the following threats do not amount to the coercion.

4.4.1 Threat to Sue Does Not Amount to Coercion

Threat to prosecute a person or file a suit against the person is not coercion. Approaching court and seeking appropriate remedy by filing suit is the fundamental right of every person. Refusing to renew a contract will not amount to coercion. Similarly, a threat not to withdraw the pending criminal proceedings, unless a bond is executed, cannot be regarded as coercion.

4.4.2 Statutory Compulsions

Where the law requires that a contract be made by the parties, the consent in such a contract will not be deemed to be caused by the coercion, or undue influence. In the same way, if anything is done at the instance of the order of court, it is not coercion.

4.4.3 Threat to Strike

A threat to strike by the employees in support of their demands is not regarded as coercion. This is because the threat to strike is not an offence under the IPC. It is a right given under the Industrial Disputes Act.

4.4.4 Detaining Property Under Mortgage

Detention of property by a mortgage, until the payment of the loan, does not amount to coercion.

4.5 UNDUE INFLUENCE

Lord Halsbury has defined that ‘undue influence is the unconscientions use, by one person, of the power possessed by him over another, in order to induce the other party to enter into a contract’.

A contract is entered on undue influence when relations that exist between the parties are such that one of them is in a position to dominate the will of the other, and the dominant party uses his position to obtain unfair advantage over the other. Thus, mere being in a position to be dominant is not enough but the party should have obtained unfair advantage by using dominant position. When a contract is made with undue influence, the contract is voidable. The aggrieved party can recover the damages, if he has suffered from any loss because of undue influence. When the contract is challenged in a court of law on the ground of undue influence, the burden of proof lies upon the weaker party.

4.6 WHEN A PERSON IS DEEMED TO BE IN POSITION TO DOMINANCE OF WILL OF OTHERS?

Generally, in the following situation or circumstances, a person is deemed to be in a position to dominate the will of others.

4.6.1 When a Person Holds Real or Apparent Authority Over Other

If one person holds real or apparent authority over the other, and uses his authority in an appropriate manner while entering into a contract with the other person, he is said to have obtained unfair advantage. Following are the relationships, where one party is enjoying authority over the other:

1. Master and servant
2. Parent and child

Example

A applied for a long leave to his offer the Registrar of a Court where A was working. The registrar proposed to grant the leave only if he promised in writing that he would not return to is job and be treated as retired. After completion of leave period, A returned to him job but the Registrar refused to accept him on the job. Held, the registrar used undue influence and the plaintiff be treated on the job.

4.6.2 When He Stands in Fiduciary Relationship Over Other

When one party stands in a fiduciary position or a relationship towards the other party, he should be in the position of dominance of the will as the other party keeps faith on him. Following are the relationships where one party stands in fiduciary relationship with the other:

1. Guardian and child
2. Guru and disciples
3. Doctor and patient
4. Solicitor and client
5. Trustee and beneficiary

4.6.3 When Contract Is Made with Mentally Weak Person

This is a contract that is made with a person whose mental capacity is temporarily or permanently affected by the reason of age, illness or bodily distress.

4.6.4 Contract with Pardanashin Woman

A pardanashin woman is one who observes complete seclusion because of the customs of her community to which she belongs. A contract with her is presumed to have been induced by undue influence.

4.6.5 No Presumption of Dominance of Will

However, in the following relationship, there is no presumption of dominance of will by one party over the other party:

1. Landlord and tenant
2. Creditor and debtor
3. Husband and wife
4. Principal and agent

Example

A applies to a Banker for a loan when the money market is very stringent. Banker says that loan could be provided only at 30% rate of interest. A accepts to such high interest. A’s consent is not obtained by way of undue influence. A could have obtained the loan from any other bank or person. Moreover banker has not obtained any unfair advantage.

4.7 DISTINGUISH BETWEEN COERCION AND UNDUE INFLUENCES

Matter	Coercion	Undue Influences
Kind of force	Use of physical force.	Use of moral force/mental force.
Intention	Intention is to obtain consent for contract.	Intention is to obtain unfair advantage from weak party.
Punishment	It is criminally liable-IPC	No criminally liability arises.
Parties	Coercion can be employed by parties or by outsider.	Undue influences can be exercise by party to the contract. There must be relation exist between parties.
Relationship	Relation between parties are immaterial.	Relation between parties are material.
Consequences	Contract is Voidable at the option of aggrieved party.	Contract is voidable or court may set it aside on application of party.

4.8 FRAUD

Fraud may be defined as an intentional, deliberate or willful mis-statement of facts, which are material for the formation of a contract.

The fraud means and includes the following acts:

1. Suggestion of facts which is not true by one person who does not believe it to be true.
2. Active concealment of the fact.
3. A promise made without any intention of performing it.
4. Any act or omission, specifically declared as fraudulent by law.
5. Any other act to deceive.

Example

Furniture dealer conceals the cracks in furniture by polish work.

The fraud is any of the above acts, if committed by the party to contract or with his consent, or by his agent with the intent to deceive another party to contract.

4.9 ESSENTIAL ELEMENTS OF FRAUD

The elements of fraud are the following:

4.9.1 False Representation

There must be a representation and the representation should be false. Alternatively, it can be said that false representation should be knowingly or without belief in its truth. Mere puffing like ‘This product is No. 1 in market’ is not fraud.

Example

A, a shopkeeper, while selling ghee represents the buyer that it is ‘pure deshi ghee’ although he knows that it is adulterated. A commits a fraud with the buyer by deliberate misrepresentation of facts.

4.9.2 Material Fact

Representation should be related to material facts.

4.9.3 Rely Upon the False Representation

One party makes false representation with the intention that the other party acts upon it. The other party should have relied on representation without knowledge. Only false statement is not sufficient to prove fraud.

4.9.4 Silence Is Not Fraud

Mere silence is not fraud unless it was the duty of the person to speak or to provide any information as per the act.

Example

A sells, by auction, to B a horse which A knows to be unsound. A says nothing to B about the horse’s unsoundness. There is no fraud on the part of A because no deliberate misrepresentation of facts was made by him.

4.10 EXCEPTION TO THE RULE—SILENCE IS NOT FRAUD

In the following circumstances, silence is considered as fraud.

4.10.1 It Is Duty of a Person to Speak in Circumstances

In the following three situations, it is the duty of the person to speak and represent in full:

1. Where parties stand in fiduciary relationship.
2. Where a contract is contract of ubberimae fidei.
3. Where duty is imposed by act.

4.10.2 Silence Is Equivalent to Speech

The silence amounts to fraud, when it is the duty of a person to speak or to inform, where a person keeps silent knowing that his silence is going to be deceptive, he is responsible for fraud.

4.11 CONTRACT OF UBBERIMAE FIDEI

In some contracts all material facts should be disclosed compulsorily, whether it is asked by the party or not. This kind of a contract, where all material information should be provided, is known as a contract of ubberimae fidei. Following are the examples of contract of ubberimae fidei.

4.11.1 Contract of Insurance

Insurance contracts are founded upon the principle of utmost good faith. The proposer, therefore, is under a duty to disclose all the facts known or ought to be known to him, which are likely to affect the acceptance of the proposal.

4.11.2 Contracts for Sale of Immovable Property

In such contracts, the buyer as well as the seller is under a duty to disclose all the material facts. All material facts with regard to defect or limitation in the title of property and any charge or pledge in favour of the third party should be disclosed to the buyer.

4.11.3 Contracts of Marriage

Every party in a marriage contract is under a duty to disclose all the material facts.

4.11.4 Contracts of Family Settlement

Each member of family is under a duty to disclose all the material facts (i.e. as to property etc.) at the time of family settlement.

4.11.5 Contract of Partnership

All partners have a duty to consult and inform other partners. All partners must be faithful to one another.

4.12 EFFECTS OF FRAUD

A contract is voidable at the option of the party who is defrauded. It means a party can cancel a contract. However following are exceptions to the above rule, where a contract is not voidable:

1. If party could discover the truth with ordinary effort.

Examples

1. A by a fraudulent act induced B to believe that 500 TV. Sets per day are assembled in A’s factory. He also produced accounts and other records of the factory but B bought the factory without verifying the fact. Later on, he found that factory was assembling only 400 TV sets per day and the accounts and records also showed the same. B is not entitled to rescind the contract because he was having the means of discovering the truth.
2. A candidate for the L.L.B. examination was short of attendance, did not mention the fact in his examination form. The university authorities did not proper scrutiny to discover the truth. Held, there was no fraud by the candidate because the university authorities had means of discovering the truth by ordinary diligence.
3. Fraud did not cause the consent of party.
4. Party has entered into a contract in ignorance of fraud. Alternatively, it can be said that if a false statement does not come to the notice of the party, there is no fraud.

Example

A bought shares in a Company on the faith of a prospectus that contained an untrue statement as to the Directorship of B. A had never heard of B and hence such statement was immaterial from his view point. A claimed damage for fraud. His claim for damage is dismissed on the ground that there was no fraud.

The aggrieved party can ask for a specific performance. The aggrieved party can sue for damage, if he has suffered a loss.

4.13 MISREPRESENTATION

It means false representation of the fact made innocently which is a material fact of contract. The misrepsentation includes:

1. A positive false statement made without any basis of information.
2. A breach of duty which brings advantages to the person committing it.
3. The inducement of mistake about subject matter.

4.13.1 Consequences of Misrepresentation

The aggrieved party can cancel the contract. It means a contract is voidable at the option of the aggrieved party but he cannot sue for damages.

4.14 ESSENTIAL ELEMENTS OF MISREPRESENTATION

All elements of fraud are equally applicable to misrepresentation except the knowledge of false facts. Following are the essential elements of misrepresentation:

1. The party makes a representation of facts which are false.
2. The misrepresentation should be related to the material facts of contract.
3. The misrepresentation should be with an intention that the other party should act upon it.
4. The representation should have been acted upon.
5. The misrepresentation was made innocently.
6. Other party actually acted believing misrepresentation to be true.

4.15 DISTINGUISH BETWEEN FRAUD AND MISREPRESENTATION

Matter	Fraud	Misrepsentation
Meaning	It is deliberate mis-statement or active concealment of the fact.	It means incorrect or false statement made without innocently.
Party making statement believe in truth	Party making statement do not believe in truth.	Party making statement believe in truth.
Intention to deceive	Intention is to deceive other party.	Intention is not to deceive other party.
Action	Aggrieved party can avoid the contract and recover damages.	Aggrieved party can avoid the contract but cannot ask for damage.
Means for discovery of truth	Contract is voidable if party has means of discovering truth with normal effort.	Contract is not voidable if party has means of discovering truth with normal effort.

4.16 SIMILARITIES BETWEEN FRAUD AND MISREPRESENTATION

Similarities between fraud and misrepresentation can be summarized as under.

1. Both of these result from misstatements made by a party.
2. The contract caused by both these factors is voidable at the option of the aggrieved party.

4.17 MISTAKE

It means an erroneous belief about some facts. A mistake can either be (a) mistake of law and (b) mistake of fact.

4.17.1 Mistake of Law

A mistake of law does not mean mistake in provisions of any law but it means there is mistake in understanding the provision of any law by the party to contract.

A mistake of law can be further classified either as mistake of Indian law or mistake of foreign law.

4.17.1.1 Mistake of Indian Law Everyone is supposed to know the law of land. In the latin maxim it is said that ‘Ignoranlia juris non excusa’. Ignorance of law is no excuse. Therefore, if there is a mistake of Indian law, the contract is not void or voidable.

Example

A, a widow, was entitled to certain occupancy rights on the land of B. She remarried and believing that she has lost her occupancy rights by reason of her second marriage, agreed to take the land on lease from B, on an increased rent. Both A and B honestly believed that A had lost her occupancy rights. The contract for higher rent is valid and not voidable although they made the contract in ignorance of law.

4.17.1.2 Mistake of Foreign Law Everyone can be supposed to know the law of the foreign country. A mistake of foreign law is treated, as if it were a mistake of facts, because person cannot be expected to know the law of the other country.

4.17.2 Mistake of Fact

A mistake of facts can be classified either as a bilateral mistake or a unilateral mistake.

4.17.2.1 Bilateral Mistake It means both the parties are at mistake related to the essential part of agreement. If an agreement is entered into on the ground of bilateral mistake, the agreement is void. An erroneous opinion, as to the value of the thing which forms the subject-matter of agreement, is not deemed to be a mistake as to the matter of fact.

Example

A buys a painting from B at a price of ₹ 20,000. Both A and B believed it to be the work of a known artist by B did not make any representation or warranty about it. Later A comes to know that it was a new one and worth only ₹ 1000. A is bound by the contract.

The bilateral mistake can be further classified as:

1. Mistake of quantity
2. Mistake of price
3. Mistake as to possibility of performance

• Mistake as to quantity

If both the parties are under a mistake as to the quantity of the subject matter of the agreement, the agreement is void. Such a mistake may even be caused by the negligence of a third party but the agreement would be void.

Example

A agreed to buy 100 sewing thread reels from B. Both believed that each reel contains 500 metres of thread but, in fact, the length of thread was only 300 metres. Held, the agreement was void as there was a bilateral mistake as to quantity of subject-matter.

• Mistake as to price

If both the parties are working under a mistake as to the price, the agreement is void.

Example

A agreed with B to let out his house for a monthly rent of ₹ 520. However, in the lease deed it was written as ₹ 350. Held, the agreement was void.

• Mistake as to possibility of performance

Example

A agrees to sell 100 units of a particular product. Later, it is discovered that there was a ban on sale of the product even at the time of making the contract. The contract is void.

4.17.2.2 Unilateral Mistake A unilateral mistake means one party is at mistake. A contract is neither void nor voidable except that it is mistake as to the nature of the contract or a mistake with regard to the identity of the person.

Examples

1. Submitted a tender to B for construction of a number of houses. A made a mistake in calculating the cost therefore his offer was lower than other tenderers. A’s tender was accepted. Held, it was a binding contract although it was an erroneous estimate based on unilateral mistake.
2. A intends to enter into contract with B but enters into contract with C believing him to be B. The contract is void if identity of person is a material factor.

4.18 DISTINGUISH BETWEEN UNILATERAL MISTAKE AND BILATERAL MISTAKE

Matter	Unilateral Mistake	Bilateral Mistake
Meaning	One party is at mistake.	Both parties to contract is at mistake.
Effect	Contract is not void or voidable.	Both parties to an agreement are under mistake of facts, agreement is void.
Provision applicable	Section 22	Section 20

LIST OF LANDMARK JUDGEMENTS

1. Ranganyakamma vs Alwar Setti (1889)

   The consent obtained from wife by detaining corpse of her husband is coercion.

2. Purabi Banerjee vs Basudev Mukherjee (1969)

   The consent obtained by threat to commit suicide is coercion. An attempt to commit suicide is an offence under the Indian Penal Code (IPC).

3. V. Srinivasa Pillai vs LIC (1977)

   A contract of insurance is the contract of ‘uberrimae fidei’ and an insured person and insurer, must disclose all material facts on their own, even if the other party does not specifically ask them.

4. Shri Krishna vs Kurukshetra University (1976)

   A candidate failed to mention the fact of shortage of attendance in the examination form. It was held that mere silence is not fraud.

5. Resee River Silver Mining Co. vs Smith (1869)

   The representation or statement which is made with knowledge of its falsity is fraud.

6. Horsefull vs Thomas (1862)

   The fraud must have actually deceived the other party.

7. Shireen Mall vs John James Taylor (1952)

   If at the time of entering into a contract, a party has no intention to perform his promise, if will be considered as fraud.

8. Ningawa vs B. S. Hire Kurabar (1968)

   Every act done with the intention of deceiving a party will be considered as fraud.

9. Griffith vs Brymer (1903)

   If an agreement is impossible to perform but the fact of impossibility is unknown to both the parties, the agreement is void.

10. Couturier vs Hastie (1856)

    Where both the parties to an agreement are under a mistake, as to the matter of fact essential to the agreement, the agreement is void.

11. Foster vs Mackinnon (1869)

    Unilateral mistake as regard to the nature of an agreement makes the agreement void.

TEST YOUR KNOWLEDGE

1. Define Consent. When is consent said to be free?

   (Ref. Para-4.1,4.2)

2. What is coercion? State the effects of coercion on the validity of a contract.

   (Ref. Para-4.3)

3. A threat to commit suicide amounts to coercion. Comment

   (Ref. Para-4.3)

4. Which threats do not amount to coercion?

   (Ref. Para-4.4)

5. A threat to lodge a criminal prosecution on a false charge amounts to coercion. Comment.

   (Ref. Para-4.4)

6. What is undue influence? State the effects of undue influence.

   (Ref. Para-4.5)

7. When is the party said to be in a position to dominate the will of others?

   (Ref. Para-4.6)

8. Distinguish between coercion and undue influence.

   (Ref. Para-4.7)

9. Define fraud. Give its suitable example.

   (Ref. Para-4.8)

10. What are the elements of fraud?

    (Ref. Para-4.9)

11. Mere puffing is not fraud. Comment.

    (Ref. Para-4.9)

12. Does silence always amount to fraud?

    (Ref. Para-4.10)

13. What do you understand by contract of ‘uberrimae fidei?’

    (Ref. Para-4.11)

14. In which circumstances, the right of aggrieved party to cancel a contract on the basis of fraud is lost?

    (Ref. Para-4.12)

15. A deceit which does not deceive is no fraud. Explain.

    (Ref. Para-4.12)

16. Explain the effects of fraud?

    (Ref. Para-4.12)

17. Write a short note on misrepresentation.

    (Ref. Para-4.13,4.14)

18. What will be the effect of misrepresentation on a contract?

    (Ref. Para-4.13)

19. Distinguish between fraud and misrepresentation.

    (Ref. Para-4.15)

20. What are the similarities between fraud and misrepresentation.

    (Ref. Para-4.16)

21. Explain various kinds of mistakes with suitable examples.

    (Ref. Para-4.17)

22. Unilateral mistake means the contract is valid. Critically evaluate this statement.

    (Ref. Para-4.17)

23. Write a short note on bilateral mistake.

    (Ref. Para-4.17)

24. Distinguish between unilateral mistake and bilateral mistake.

    (Ref. Para-4.18)

MULTIPLE-CHOICE QUESTIONS

1. Consent means parties agreeing on
   1. the terms of contract.
   2. some terms of contract.
   3. the same thing in the same sense.
   4. any matter of contract.
2. Two persons are said to consent
   1. when they agree on any thing.
   2. when they agree upon the same thing in their own way.
   3. when they agree upon the same thing in the same sense.
   4. when they agree upto the same thing in different sense.
3. ................. means forcibly compelling a person to enter into a contract.
   1. Intimidation
   2. Fraud
   3. Mistake
   4. Coercion
4. Coercion includes
   1. threat to life.
   2. threat to detain property.
   3. detain goods unlawfully.
   4. all of the above.
5. A threatens to kill B, if B does not agree to sell his property to A. B’s consent is obtained by
   1. fraud.
   2. undue influence.
   3. coercion.
   4. misrepresentation.
6. Duress under English contract law is similar to
   1. undue influence.
   2. coercion.
   3. fraud.
   4. misrepresentation.
7. ................. means unfair use of one’s superior power in order to obtain the consent of a person, who is in a weaker position.
   1. Coercion
   2. Undue influence
   3. Fraud
   4. Misrepresentation
8. The agreement entered into without free consent is
   1. valid.
   2. void.
   3. voidable.
   4. illegal.
9. Which of the following relationships raise presumption of undue influence?
   1. Parent and child
   2. Guardian and ward
   3. Spiritual guru and disciple
   4. All of the above
10. Which of the following relationships raise presumption of undue influence?
    1. Doctor and patient.
    2. Solicitor and client.
    3. Trustee and beneficiary.
    4. All of the above.
11. To employ ‘Undue Influence,’ relationship between the parties is
    1. necessary.
    2. not necessary.
    3. required.
    4. presumed.
12. Fraud means
    1. suggestion as a fact, of something which is not true, by a person who does not believe it to be true.
    2. active concealment of a fact.
    3. promise made without any intention of performing it.
    4. all of the above.
13. Which of these does not constitute fraud?
    1. Suggestion as a fact, of something which is not true, by a person who does not believe it to be true.
    2. Active concealment of a fact.
    3. Innocent statement, honestly believing the same to be true.
    4. Promise made without any intention of performing it.
14. In which of the following situations. silence is regarded as fraud?
    1. Having regard to the circumstances, if it is the duty of the person to speak.
    2. In cases where silence by itself is equivalent to speech.
    3. Both (i) and (ii).
    4. Neither (i) nor (ii).
15. When the contract is entered into by fraud, it is
    1. void.
    2. valid.
    3. invalid.
    4. voidable.
16. In cases of silence amounting to fraud, where the other party had the means of discovering truth with ordinary diligence, the contract is
    1. void.
    2. voidable.
    3. not voidable.
    4. conditional.
17. The important element which distinguishes mispresentation from fraud is that the misrepresentation is an
    1. intentional statement.
    2. innocent statement.
    3. important statement.
    4. irrelevant statement.
18. For a marriage contract, the relatives speaking for the girl failed to disclose that she was suffering from epileptic fits. In this case, engagement is voidable on account of
    1. fraud.
    2. misrepresentation.
    3. undue influence.
    4. none of the above.
19. Which of the following are essential features of misrepresentation?
    1. Representation should be of a material fact.
    2. It must be made before the conclusion of the contract.
    3. There should not be an intention to deceive the other party.
    4. All of the above.
20. .......... is an erroneous belief about something.
    1. Representation
    2. Mistake
    3. Fraud
    4. Misrepresentation
21. When one of the parties is under a mistake as to a matter of fact essential to the agreement, it is called
    1. unilateral mistake.
    2. bilateral mistake.
    3. partial mistake.
    4. incomplete mistake.
22. An old illiterate man was made to sign a bill of exchange, by means of a false representation that it was a guarantee. The contract is
    1. illegal.
    2. valid.
    3. void.
    4. voidable.
23. Bilateral mistake may relate to
    1. subject matter.
    2. possibility of performance.
    3. neither (i) nor (ii).
    4. both (i) and (ii).
24. Threat to commit suicide amounts to
    1. fraud
    2. coercion
    3. undue influence
    4. offence under IPC.
    1. i and ii
    2. ii and iii
    3. iii and iv
    4. ii and iv
25. Threat to detain property in unlawful manner amount as
    1. fraud.
    2. coercion.
    3. mistake.
    4. all of the above.
26. Undue influence is a kind of
    1. mental coercion.
    2. physical coercion.
    3. both (i) and (ii).
    4. none of the above.
27. The fiduciary relations means the relationship of
    1. trust and confidence.
    2. master and servant.
    3. none of the above.
    4. both (i) and (ii).
28. A, intending to deceive B, falsely represents that 500 bags are made daily at his factory, and thereby induces B to buy the factory. The contract is
    1. voidable at the option of B.
    2. voidable at the option of A.
    3. void.
    4. none of the above.
29. The husband asks his wife that he would commit suicide, if she does not give him her ornaments. The wife gives the ornaments.
    1. The contract can be avoided by the wife.
    2. The contract is void.
    3. The husband can enforce the contract.
    4. Both (ii) and (iii).

ANSWER KEYS

1. iii
2. iii
3. iv
4. iv
5. iii
6. ii
7. ii
8. iii
9. iv
10. iv
11. i
12. iv
13. iii
14. iii
15. iv
16. iii
17. ii
18. i
19. iv
20. ii
21. i
22. iii
23. iv
24. iv
25. ii
26. i
27. i
28. i
29. i