CA Foundation Exam  >  CA Foundation Questions  >  A agrees to sell his car worth Rs. 100,000 to... Start Learning for Free
A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion.  Here, the agreement is __________
  • a)
    Void
  • b)
    Valid
  • c)
    Voidable
  • d)
    Unlawful
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, a...
Voidable, in law, is a transaction or action that is valid but may be annulled by one of the parties to the transaction. Voidable is usually used in distinction to void ab initio (or void from the outset) and unenforceable.

Reasons that can make a contract voidable include failure by one or both parties to disclose a material fact; a mistake, misrepresentation or fraud; undue influence or duress; one party's legal incapacity to enter a contract; one or more terms that are unconscionable; or a breach of contract.
Free Test
Community Answer
A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, a...
Explanation:

In this scenario, A agrees to sell his car worth Rs. 100,000 to B for only Rs. 20,000. However, A's consent to the agreement was obtained by coercion. Let's understand the implications of coercion and how it affects the validity of the agreement.

Coercion:
Coercion is a type of force that compels a person to enter into an agreement against their will. It involves the use of physical force or threat to obtain the consent of the party. In this case, A's consent to sell his car for a significantly lower price than its actual worth was obtained through coercion.

Effect on Agreement:
When consent is obtained through coercion, the agreement becomes voidable. This means that the party whose consent was coerced has the option to either enforce the agreement or reject it. They have the right to set aside the agreement and seek remedies for the coercion.

Voidable Agreement:
A voidable agreement is one that is initially valid and enforceable, but due to certain factors such as coercion, fraud, misrepresentation, undue influence, etc., the party whose consent was affected has the right to avoid or cancel the contract. In this case, A can choose to avoid the agreement as his consent was obtained by coercion.

Remedies:
If A decides to avoid the agreement, he can seek remedies for the coercion. These remedies may include:

1. Rescission: A can request the court to cancel the agreement and restore the parties to their original positions.

2. Damages: A may be entitled to claim damages for any loss or harm suffered as a result of the coercion.

3. Injunction: A can seek an injunction to prevent B from taking possession of the car or selling it to someone else until the matter is resolved.

Conclusion:
In conclusion, the agreement between A and B is voidable as A's consent was obtained by coercion. A has the option to avoid the agreement and seek remedies for the coercion.
Explore Courses for CA Foundation exam
A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion. Here, the agreement is __________a)Voidb)Validc)Voidabled)UnlawfulCorrect answer is option 'C'. Can you explain this answer?
Question Description
A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion. Here, the agreement is __________a)Voidb)Validc)Voidabled)UnlawfulCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion. Here, the agreement is __________a)Voidb)Validc)Voidabled)UnlawfulCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion. Here, the agreement is __________a)Voidb)Validc)Voidabled)UnlawfulCorrect answer is option 'C'. Can you explain this answer?.
Solutions for A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion. Here, the agreement is __________a)Voidb)Validc)Voidabled)UnlawfulCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion. Here, the agreement is __________a)Voidb)Validc)Voidabled)UnlawfulCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion. Here, the agreement is __________a)Voidb)Validc)Voidabled)UnlawfulCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion. Here, the agreement is __________a)Voidb)Validc)Voidabled)UnlawfulCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion. Here, the agreement is __________a)Voidb)Validc)Voidabled)UnlawfulCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion. Here, the agreement is __________a)Voidb)Validc)Voidabled)UnlawfulCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev