Contract Law (CLAT Legal-Aptitude): Questions 54 - 56 of 97
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Question number: 54
» Contract Law
If an agreement specifies that legal proceedings may be instituted only in the judicial tribunals or courts situated in Kanpur, institution of legal proceedings in any other city shall be considered invalid
Every agreement, by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights, is void to the extent
|a.||Both Ꭺ and Ꭱ are false|
|b.||Both Ꭺ and Ꭱ are true and Ꭱ is the correct explanation of Ꭺ|
|c.||Ꭺ is false but Ꭱ is true|
|d.||Both Ꭺ and Ꭱ are true but Ꭱ is NOT the correct explanation of Ꭺ|
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.
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: 55 (1 of 4 Based on Passage) Show Passage
» Contract Law
Justified in refusing to enforce the employment contract as Chulbul was coerced by Dhanraj.
Justified in refusing to enforce the employment contract as Baalu was complicit in the coercive act
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: 56 (2 of 4 Based on Passage) Show Passage
» Contract Law
Baalu will succeed in getting the employment contract enforced if he can show that
He is the best friend of Aadil
It was his father, and not he, who used coercion against Chulbul.
Chulbul has promised his father to employ him.
|d.||All of the above|