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…
Choose your answer
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?
Answer and explanation
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.
Practice for these exams
-
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
UGC NET Law
Subject revision
See pack details on LawMint.net -
IIT Kharagpur LL.M. Entrance
Subject revision
See pack details on LawMint.net -
CLAT PG
Subject revision for a passage-based exam
-
CUET PG Law (LL.M.)
Subject revision
-
AILET PG
Subject revision
-
Supreme Court Law Clerk and Research Associate
Subject revision
-
Bihar Judicial Services
Subject revision
-
Uttarakhand Judicial Services
Subject revision