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A party understands the nature of a contract and consents because of fraud, undue influence or…

Section 19 makes a contract voidable at the option of a party whose consent was caused by fraud or coercion. Section 19A makes a contract induced by undue influence voidable…

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A party understands the nature of a contract and consents because of fraud, undue influence or coercion. Assuming no separate ground of invalidity, what is the contract’s status under sections 19 and 19A of the Indian Contract Act, 1872?

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Correct answer B

Section 19 makes a contract voidable at the option of a party whose consent was caused by fraud or coercion. Section 19A makes a contract induced by undue influence voidable at the option of the affected party. The question assumes that the affected party understood the nature of the transaction.

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Option A

In the stated circumstances sections 19 and 19A make the contract voidable at the affected party’s option.

Option B

Section 19 covers consent caused by fraud or coercion. Section 19A provides for setting aside a contract induced by undue influence.

Option C

The statutory option belongs to the party whose consent was affected.

Option D

The affected party has a statutory right to avoid the contract.

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