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What doctrine allows an Indian court to refuse enforcement of an oppressive contract term imposed…

In Central Inland Water Transport Corporation Ltd. v. Brojo Nath Ganguly, the Supreme Court held the unfair term before it void as opposed to public policy under section 23…

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What doctrine allows an Indian court to refuse enforcement of an oppressive contract term imposed through grossly unequal bargaining power?

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Answer and explanation

Correct answer A

In Central Inland Water Transport Corporation Ltd. v. Brojo Nath Ganguly, the Supreme Court held the unfair term before it void as opposed to public policy under section 23 of the Indian Contract Act, 1872.

The doctrine of unconscionability addresses oppressive terms of this kind where the parties have substantially unequal bargaining power.

Option feedback

Option A

Unconscionability concerns oppressive terms imposed in circumstances such as grossly unequal bargaining power.

Option B

Precontractual fault concerns conduct in the negotiation or formation of a contract.

Option C

Abuse of rights concerns misuse of an existing right.

Option D

The binding force of agreements concerns enforcement of valid bargains.

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