CLAT Legal-Aptitude: Questions 98 - 101 of 1064

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Passage

PRINCIPLES:

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.

Question number: 98 (2 of 4 Based on Passage) Show Passage

» Contract Law

MCQ▾

Question

Chulbul is:

Choices

Choice (4) Response

a.

Justified in refusing to enforce the employment contract as Chulbul was coerced by Dhanraj.

b.

Justified in refusing to enforce the employment contract as Baalu was complicit in the coercive act

c.

No justified in refusing to enforce the employment contract as Baalu was an innocent person and has not coerced Chulbul.

d.

Both a. and b. are correct

Question number: 99 (3 of 4 Based on Passage) Show Passage

» Contract Law

MCQ▾

Question

As per the rules and the given facts, who coerces whom:

Choices

Choice (4) Response

a.

Baalu coerces Chulbul

b.

Aadil coerces Baalu

c.

Dhanraj coerces Chulbul

d.

Question does not provide sufficient data or is vague

Question number: 100 (4 of 4 Based on Passage) Show Passage

» Contract Law

MCQ▾

Question

In the above fact situation:

Choices

Choice (4) Response

a.

There is no undue influence

b.

There is undue influence exercised by Dhanraj on Baalu.

c.

There is undue influence exercised by Aadil on Chulbul

d.

None of the above

Question number: 101

» Law: Nature and Classification

Appeared in Year: 2015

Assertion-Reason▾

Assertion (Ꭺ)

We, the people of India, having solemnly resolved to constitute India into a Democratic Republic.

Reason (Ꭱ)

A republic will ensure we have a head of State that is democratically elected and accountable to voters. As a result, the head of state will be a more effective constitutional safeguard.

Choices

Choice (4) Response

a.

Ꭺ is false but Ꭱ is true

b.

Both Ꭺ and Ꭱ are false

c.

Both Ꭺ and Ꭱ are true and Ꭱ is the correct explanation of Ꭺ

d.

Ꭺ is true but Ꭱ is false

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