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Test: Coercion under Indian Contract Act - Judiciary Exams MCQ


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15 Questions MCQ Test - Test: Coercion under Indian Contract Act

Test: Coercion under Indian Contract Act for Judiciary Exams 2024 is part of Judiciary Exams preparation. The Test: Coercion under Indian Contract Act questions and answers have been prepared according to the Judiciary Exams exam syllabus.The Test: Coercion under Indian Contract Act MCQs are made for Judiciary Exams 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Coercion under Indian Contract Act below.
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Test: Coercion under Indian Contract Act - Question 1
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What does coercion in contract law involve?

Detailed Solution for Test: Coercion under Indian Contract Act - Question 1
Coercion in contract law entails using threats or actual harm to compel someone into entering a contract. This undermines the voluntary nature of agreements and can render the contract unenforceable. It is essential for contracts to be based on the genuine consent of all parties involved to maintain the integrity of legal agreements.
Test: Coercion under Indian Contract Act - Question 2
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What term describes a situation where a contract contains extremely unfair terms?

Detailed Solution for Test: Coercion under Indian Contract Act - Question 2
Unconscionability refers to a scenario where a contract includes terms that are excessively unfair or one-sided, making it difficult to enforce such agreements. This concept underscores the importance of ensuring fairness and equity in contractual relationships to protect the interests of all parties involved.
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Test: Coercion under Indian Contract Act - Question 3
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How does the concept of "Unclean hands" serve as a defense against coercion tactics in agreements?

Detailed Solution for Test: Coercion under Indian Contract Act - Question 3
The concept of "Unclean hands" acts as a defense against coercion by suggesting that both parties involved in the agreement exerted pressure on each other to enter into the contract. It implies a scenario where both parties were equally guilty of coercive behavior, thereby potentially negating the claims of coercion made by one party against the other. This defense mechanism aims to ensure fairness and accountability in contractual relationships.
Test: Coercion under Indian Contract Act - Question 4
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What is the typical outcome when coercion is identified in the formation of a contract?
Detailed Solution for Test: Coercion under Indian Contract Act - Question 4
When coercion is identified in the formation of a contract, the typical outcome involves the contract being voided. This means that the agreement is considered null and void from the beginning, releasing both parties from their obligations as outlined in the contract. Voiding the contract is a legal remedy to address situations where one party's consent was obtained through improper means like coercion, ensuring fairness and upholding the principles of contract law.
Test: Coercion under Indian Contract Act - Question 5
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How does contract rescission impact the parties involved in a coerced agreement?
Detailed Solution for Test: Coercion under Indian Contract Act - Question 5
Contract rescission, which results from identifying coercion in a contract, leads to the cancellation of the agreement. This action releases both parties from their obligations as outlined in the contract, effectively undoing the legal consequences of the coerced agreement. Rescission aims to restore the parties to their pre-contractual positions and ensures that neither party is bound by the terms of a contract that was tainted by coercion.
Test: Coercion under Indian Contract Act - Question 6
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What does the concept of "unclean hands" serve as in agreements to combat coercion tactics?
Detailed Solution for Test: Coercion under Indian Contract Act - Question 6
The concept of "unclean hands" functions as a defense mechanism against coercion tactics in agreements. It implies that if one party can prove coercion and show that the other party was equally guilty of the same act, then the coerced party may not be held accountable for the agreement. This defense highlights how coercion can invalidate a contract if proven, emphasizing the importance of genuine consent in legal agreements.
Test: Coercion under Indian Contract Act - Question 7
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In the realm of contracts, what does coercion involve?
Detailed Solution for Test: Coercion under Indian Contract Act - Question 7
Coercion in contracts refers to one party exerting undue pressure on another to enter into an agreement. This undue pressure can range from threats to physical harm or other coercive tactics that undermine the voluntary nature of the agreement. If coercion is proven, the affected party can argue that they should not be bound by the terms of the contract.
Test: Coercion under Indian Contract Act - Question 8
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How does the Indian Contract Act view contracts affected by coercion?
Detailed Solution for Test: Coercion under Indian Contract Act - Question 8
Under the Indian Contract Act, if coercion is proven in a contract, it can lead to the contract being voided. This means that if one party can demonstrate that they were unduly pressured into the agreement, they can seek to be released from fulfilling the contract's terms. This provision underscores the significance of genuine and voluntary consent in contractual agreements.
Test: Coercion under Indian Contract Act - Question 9
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What is the implication if coercion is established in a contract?
Detailed Solution for Test: Coercion under Indian Contract Act - Question 9
If coercion is established in a contract, the affected party may argue that they should not be bound by the terms of the agreement. This emphasizes the legal principle that agreements entered into under duress or undue influence lack the necessary element of genuine consent, making them potentially voidable.
Test: Coercion under Indian Contract Act - Question 10
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What factor can render a contract unenforceable when one party takes advantage of another due to a special, pre-existing relationship?
Detailed Solution for Test: Coercion under Indian Contract Act - Question 10
In contract law, undue influence occurs when one party takes advantage of another due to a special, pre-existing relationship. This can involve situations where one party exerts influence over the other, exploiting their relationship to gain an unfair advantage in a contract. It is essential to recognize and address cases of undue influence to ensure fair and valid contractual agreements.
Test: Coercion under Indian Contract Act - Question 11
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Which type of contract terms are considered extremely unfair or unreasonable and cannot be enforced due to unconscionability?
Detailed Solution for Test: Coercion under Indian Contract Act - Question 11
Unconscionability in contract law pertains to contract terms that are so one-sided, oppressive, or unjust that enforcing them would be unconscionable or morally unacceptable. These terms often exploit the weaker party, go against good conscience, or involve excessive benefits for one party at the expense of the other. Courts may refuse to enforce such terms to protect parties from unfair agreements.
Test: Coercion under Indian Contract Act - Question 12
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In the case of Chikham Amiraju v. Chikham Seshamma, what was the basis on which the court ruled the release deed voidable under the Indian Contract Act?
Detailed Solution for Test: Coercion under Indian Contract Act - Question 12
In the case of Chikham Amiraju v. Chikham Seshamma, the court ruled the release deed voidable under the Indian Contract Act based on the threat of physical harm. Coercion through threats of physical harm is considered unacceptable under the law as it undermines the voluntary nature of consent in contracting.
Test: Coercion under Indian Contract Act - Question 13
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Askari Mirza v. Bibi Jai Kishori involved an agreement where one party abandoned prosecution due to fear of what consequences?
Detailed Solution for Test: Coercion under Indian Contract Act - Question 13
In the case of Askari Mirza v. Bibi Jai Kishori, one party abandoned prosecution due to fear of legal repercussions. The court validated the consent given in this scenario, emphasizing that mere fear of legal consequences, such as criminal prosecution, does not necessarily render an agreement void under the Indian Penal Code.
Test: Coercion under Indian Contract Act - Question 14
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Coercion leading to the voidability of a contract under the Indian Contract Act is primarily concerned with undermining which aspect of contracting?
Detailed Solution for Test: Coercion under Indian Contract Act - Question 14
Coercion leading to the voidability of a contract under the Indian Contract Act primarily concerns undermining the aspect of consent in contracting. When consent is obtained through coercion, the contract becomes voidable, as coercion impairs the free will and voluntary agreement essential for a valid contract.
Test: Coercion under Indian Contract Act - Question 15
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In legal terms, what does the term "voidable" signify regarding a contract affected by coercion under the Indian Contract Act?
Detailed Solution for Test: Coercion under Indian Contract Act - Question 15
In legal terms, when a contract is deemed "voidable" due to coercion under the Indian Contract Act, it means that the contract is initially valid but can be rescinded at the option of the affected party. This provides protection to parties whose consent was obtained through coercion, allowing them to choose whether to affirm or void the contract.
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