Question

Legal Priinciples
Rules:
A. The act of using threat to enter into a contract is called coercion.
B. The act of using influence on another and taking undue advantage of that person is called undue influence.
C In order to prove coercion, the existence of the use of threat, in any form and manner, is necessary. If coercion is proved, the person who has been so threatened can refuse to abide by the contract.
D In order to prove undue influence, there has to be a pre-existing relationship between the parties to a contract. The relationship has to be of such a nature that one is in position to influence the other. If it is proven that there has been undue influence, the party who has been so influenced need not enforce the contract or perform his obligation, under the contract.

Facts:

Aadil and Baalu are best friends. Aadil is the son of a multi-millionaire businessman, Chullbul, who owns Maakhan pharmaceuticals. Baalu is the son of a bank employee , Dhanraj . One day, Aadil is abducted from his office by Baalu. Chulbul receives a phone call from Dhanraj telling him that if he does not make Baalu the CEO of Maakhan Pharmaceutical, Aadil will be killed. Chulbul reluctantly agrees to make Baalu the CEO. Subsequently, Chulbul and Baalu sign an employment contract. However , as soon as Aadil is released and safely returns home, Chulbul tells Baalu that he shall not enforce the employment contract. Baalu and Dhanraj are not sure to what is to be done next.
Baalu will succeed in getting the employment contract enforced if he can show that ____________________.

• A. he is the best friend of Aadil
• B. it was his father, and not he , who used coercion against Chulbul
• C. Chalbul has promised his father to employee him
• D. None of the above

Answer 1

Answer: (D)

None of the above

The act of coercion makes any type of contract voidable. In this case, The employment contract was made by the act of coercion which is the act forbidden by Indian Penal Code (45 of 1980). Hence the employment contract signed between Chulbul & Baalu is voidable and cannot be enforceable. The correct option is D.