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Test: Undue Influence - Judiciary Exams MCQ


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20 Questions MCQ Test - Test: Undue Influence

Test: Undue Influence for Judiciary Exams 2024 is part of Judiciary Exams preparation. The Test: Undue Influence questions and answers have been prepared according to the Judiciary Exams exam syllabus.The Test: Undue Influence MCQs are made for Judiciary Exams 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Undue Influence below.
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Test: Undue Influence - Question 1
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What does consent entail according to Section 13 of the Indian Contract Act?

Detailed Solution for Test: Undue Influence - Question 1
Consent, as per Section 13 of the Indian Contract Act, involves an agreement on the same terms in the same manner. This agreement signifies a meeting of minds between the parties, highlighting the crucial aspect of consensus-ad-idem in contract law.
Test: Undue Influence - Question 2
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What is the significance of free consent in contracts according to the Indian Contract Act?

Detailed Solution for Test: Undue Influence - Question 2
Free consent, as defined in the Indian Contract Act, plays a vital role in protecting parties from various forms of coercion such as undue influence, fraud, misrepresentation, and mistake. It ensures that agreements are entered into willingly and without any external pressures, safeguarding the fairness and integrity of contractual relationships.
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Test: Undue Influence - Question 3
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How is free consent defined under the Indian Contract Act?

Detailed Solution for Test: Undue Influence - Question 3
Free consent, under the Indian Contract Act, is characterized as consent that is free from coercion, undue influence, fraud, misrepresentation, or mistake. This definition emphasizes the importance of parties entering into agreements voluntarily and without any improper influences or deceit.
Test: Undue Influence - Question 4
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What principle is upheld by the concept of free consent in contracts?
Detailed Solution for Test: Undue Influence - Question 4
The principle of consensus-ad-idem is upheld by the concept of free consent in contracts. This principle emphasizes that for a contract to be valid, parties must agree upon the same thing in the same sense, ensuring clarity and mutual understanding in the contractual relationship.
Test: Undue Influence - Question 5
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How does the principle of consensus-ad-idem contribute to the validity of contracts?
Detailed Solution for Test: Undue Influence - Question 5
The principle of consensus-ad-idem, meaning a meeting of the minds, is crucial for the validity of contracts. It ensures that all parties involved in the contract have a mutual understanding and agreement on the essential terms and objectives. Without consensus-ad-idem, there is a risk of misunderstandings and disputes arising from differing interpretations of the contract's terms.
Test: Undue Influence - Question 6
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What is coercion, as defined in Section 15 of the Indian Contracts Act?
Detailed Solution for Test: Undue Influence - Question 6
Coercion, according to Section 15 of the Indian Contracts Act, involves committing or threatening to commit any act prohibited by the Indian Penal Code. This definition encompasses a wide range of actions that are intended to compel someone to enter into an agreement. Coercion undermines the voluntary nature of consent, which is essential for a contract to be valid.
Test: Undue Influence - Question 7
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In the case of Chikkam Ammiraju v. Chickam Seshamma, how was coercion demonstrated?
Detailed Solution for Test: Undue Influence - Question 7
Coercion in the case of Chikkam Ammiraju v. Chickam Seshamma was evident when the husband used the threat of suicide to coerce his wife and son into signing a release deed in favor of his brother. This threat of self-harm was deemed coercive under Section 15 of the Indian Contracts Act, rendering the resulting agreement voidable.
Test: Undue Influence - Question 8
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What action by 'A' towards 'B' would not constitute coercion under the Indian Contracts Act?
Detailed Solution for Test: Undue Influence - Question 8
Promising a reward for signing a document does not fall under coercion as defined by the Indian Contracts Act. Coercion involves the use of threats or force to induce someone to enter into an agreement against their free will. In this scenario, the promise of a reward does not involve any form of coercion.
Test: Undue Influence - Question 9
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How does coercion impact the validity of a contract under the Indian Contracts Act?
Detailed Solution for Test: Undue Influence - Question 9
Coercion renders a contract voidable at the option of the coerced party under the Indian Contracts Act. This means that the party who was coerced into entering the agreement has the right to choose whether to uphold or void the contract due to the presence of coercion, which undermines the voluntary nature of consent in contractual agreements.
Test: Undue Influence - Question 10
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What does undue influence entail according to Section 16 of the Indian Contracts Act?
Detailed Solution for Test: Undue Influence - Question 10
Undue influence, as per Section 16 of the Indian Contracts Act, involves one party exerting control over the will of another for unfair gains. This can occur when there is a power imbalance or a situation where one party exploits the vulnerability of the other, compromising their ability to make independent decisions. It is crucial to recognize and address situations where undue influence is present to ensure fair and equitable contract agreements.
Test: Undue Influence - Question 11
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In what scenario does the burden of proof lie with the dominating party regarding undue influence in a contract?
Detailed Solution for Test: Undue Influence - Question 11
In cases where one party holds authority or is in a fiduciary relationship with the other, and the contract appears unconscionable, the burden of proof shifts to the dominating party to demonstrate that undue influence was not a factor in the agreement. This legal principle aims to safeguard individuals from being coerced or manipulated into entering contracts that are not in their best interests.
Test: Undue Influence - Question 12
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How can undue influence be manifested in a contractual relationship?
Detailed Solution for Test: Undue Influence - Question 12
Undue influence can manifest in a contractual relationship when one party takes advantage of the mental vulnerabilities of the other, such as age, illness, or distress. This exploitation of vulnerabilities can lead to one party exerting control over the decision-making process, undermining the principle of free and informed consent essential for valid contract formation.
Test: Undue Influence - Question 13
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What legal outcome may arise if undue influence is proven in a contract involving a dominating party?
Detailed Solution for Test: Undue Influence - Question 13
If undue influence is established in a contract where one party exerted control over the other, the contract may be deemed voidable. This legal outcome aims to protect the party who was unduly influenced from unfair agreements that were not entered into freely or voluntarily. The law seeks to provide remedies to rectify situations where one party exploits the vulnerability of another for personal gain.
Test: Undue Influence - Question 14
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In the case of Derry v. Peek, what type of false representation led to legal consequences?
Detailed Solution for Test: Undue Influence - Question 14
In the case of Derry v. Peek, legal consequences ensued due to a false representation that was made without believing in its truth. This implies that the party knowingly misrepresented a fact without having any belief in its accuracy or truthfulness, leading to detrimental legal outcomes.
Test: Undue Influence - Question 15
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What differentiates fraud from remaining silent about crucial facts in a contract?
Detailed Solution for Test: Undue Influence - Question 15
Fraud in a contract involves intentional deception through the act of making false statements with the intent to deceive. On the other hand, simply remaining silent about facts that could impact a person's decision to enter a contract does not qualify as fraud. Intentional deception is a key factor that distinguishes fraud from silence in contractual agreements.
Test: Undue Influence - Question 16
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What was the outcome in the legal case of Lakshmi Amma Vs T. Narayana concerning the gifting of assets?
Detailed Solution for Test: Undue Influence - Question 16
In the legal case of Lakshmi Amma Vs T. Narayana, the court deemed the gift voidable due to undue influence. This ruling indicates that the manipulation and coercion involved in gifting all assets to one individual while excluding others led to the court's decision to invalidate the gift, highlighting the impact of undue influence in such situations.
Test: Undue Influence - Question 17
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What distinguishes active concealment from mere silence in a contract?
Detailed Solution for Test: Undue Influence - Question 17
Active concealment in a contract involves intentionally hiding key details from the other party, which can render the contract invalid and lead to legal liabilities for the concealing party. This deliberate act of deception distinguishes active concealment from mere silence, where parties are not obligated to disclose all material facts unless there is a duty to do so.
Test: Undue Influence - Question 18
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What does misrepresentation involve in a contract according to the Indian Contracts Act?
Detailed Solution for Test: Undue Influence - Question 18
Misrepresentation in a contract, as per the Indian Contracts Act, involves the untrue statement of law or fact by one party, influencing the other party to enter into an agreement. This can render a contract void and may allow the affected party to claim damages. It's important to note that misrepresentation pertains specifically to statements of facts and not opinions or predictions.
Test: Undue Influence - Question 19
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What consequences can fraud have on a contract under common law?
Detailed Solution for Test: Undue Influence - Question 19
In common law, fraud not only renders a contract voidable but can also result in potential damages for deceit. This means that if fraud is proven in a contract, it can make the contract void and entitle the deceived party to seek damages for the fraudulent behavior.
Test: Undue Influence - Question 20
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How does misrepresentation impact the affected party in a contract?
Detailed Solution for Test: Undue Influence - Question 20
Misrepresentation can serve as grounds for breaching a contract, irrespective of its size. If one party has been misled by false statements of fact, it can provide legal justification for the affected party to terminate the contract or seek other remedies available under the law.
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