Question

Solve.
X an agent, refused to hand over the account books of Y, the principal to the new agent appointed in his place unless the principal released him from all liabilities. The principal had to give a release deed as demanded. Is this release deed binding upon the principal?

Answer 1

Solution:
Section to which the given problem relates: Section 15.
Decision:
Y can avoid the contract on the ground of coercion.
Reason:
Y's consent is not free as it has been obtained by unlawful detaining of the property (i.e. account books).
Leading case:
Muthia v. Karuppan]