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Question

LEGAL PRINCIPLE: A minor is not competent to contract.


FACTUAL SITUATION: Deep, a 9th standard student realizes that he being a minor, he is not permitted by law to execute a contract, appoints Mandeep as his agent to conclude purchase of a land to gift it to his mother on her birthday. Mandeep accordingly prepares the papers for the transaction but at the last minute the seller who had agreed to sell it now refuses to sell it contending that he does not wish to sell the land to a minor. Deep seeks to enforce the contract against the seller.

DECIDE.

A
Deep can enforce the contract- since Mandeep is his agent. Deep is deemed to have personally entered into a contract
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B
Deep contract enforce the contract - only Mandeep can, since seller has entered into the contract with Mandeep
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C
Deep cannot enforce the contract since he is a minor
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D
Deep can neither appoint an agent nor enforce the contract since he is a minor
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Solution

The correct option is D Deep can neither appoint an agent nor enforce the contract since he is a minor
A contract by a minor is void ab initio under the Indian Contract Act. Therefore Deep cannot appoint an agent nor enforce contract since he is a minor.

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Q. 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 ____________________.

Q. Rules
A. The act of using threats to force another person 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 a 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 obligations under the contract.
Facts
Aadil and Baalu are best friends. Aadil is the son of multi millionaire business person, Chulbul 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 Pharmaceuticals, Aadil will be killed. Chulbul reluctantly agrees to make the 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 as to what is to be done next.
Baalu will succeed in getting the employment contract enforced if he can show that
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