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A, a money-lender, advances Rs. 100 to B, an agriculturist, and, by undue influence, induces B to…

Illustration (b) to section 19A says the Court "may set the bond aside, ordering B to repay the Rs. 100 with such interest as may seem just". A contract caused by undue…

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A, a money-lender, advances Rs. 100 to B, an agriculturist, and, by undue influence, induces B to execute a bond for Rs. 200 with interest at 6 per cent per month. A sues B on the bond. What may the Court do under section 19A of the Indian Contract Act, 1872?

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Correct answer B

Illustration (b) to section 19A says the Court "may set the bond aside, ordering B to repay the Rs. 100 with such interest as may seem just". A contract caused by undue influence is voidable, and where the party entitled to avoid it "has received any benefit thereunder", the Court may set it aside "upon such terms and conditions as to the Court may seem just". B received Rs. 100, so he is not let off altogether, but the inflated bond for Rs. 200 does not stand.

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