1. Legal Principle: 1.
The act of using threats to force another person to enter into a contract is called coercion. 2.
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. Factual Situation:
A, threatens to shoot of (B’s son), if B does not release him from a debt which A owes to B. B signs necessary documents and thus releases A under tin threat. Issue:
Can B get back his loan afterwards? Decision:
a) Yes, B can get back his loan amount, as his consent for release was obtained by coercion.
b) No, B cannot get back his loan afterwards.
c) It will be the discretion of the court.
2. Legal Principle:
Agreements, the meaning of which is not certain, or not capable of being made certain, are void. Facts:
A horse was bought for a certain price coupled with a promise to give Rs. 500 more if the horse is proved lucky.
a) This is a valid agreement.
b) This agreement is void for uncertainty because it is very difficult to determine what luck, bad or good, the horse has brought to the buyer.
c) The agreement is partially valid and partially void.
d) None of the above.