Home › CLAT (NLU Prep) › law › Formation of Contract › A contract made under coercion, fraud or misrepr…
A contract made under coercion, fraud or misrepresentation is under Section 19
A{'text': 'Void ab initio', 'label': 'A'}
B{'text': 'Enforceable only in criminal court', 'label': 'B'}
C{'text': 'Voidable at the option of the aggrieved party', 'label': 'C'}
D{'text': 'Illegal and punishable', 'label': 'D'}
Answer & Solution
Correct answer: C. {'text': 'Voidable at the option of the aggrieved party', 'label': 'C'}
1. Section 19 governs the status of contracts where consent is caused by coercion, fraud or misrepresentation.
2. Such contracts are voidable at the option of the party whose consent was so caused.
3. That aggrieved party may either avoid the contract or insist on its performance.
4. Voidable is not the same as void: the contract stands until the aggrieved party rescinds it.
_Source: Indian Contract Act, 1872 (indiacode.nic.in), S. 19_
Related questions
Agreements in restraint of legal proceedings, in restraint of trade and in restraint of maThe term "consideration" in Section 2(d) may be furnished byUnder Section 17, fraud in a contract does NOT includeUnder Section 15, "coercion" includesAn agreement by way of wager is under Section 30Agreements the meaning of which is not certain, or capable of being made certain, are undeUnder Section 28, agreements restricting a party's right to enforce legal rights in ordinaUnder Section 27, an agreement in restraint of trade is