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CMA Foundation · Fundamentals of Business Laws and Business Communication · Capacity of Parties, Free Consent

Anil gets the consent of Bhavna to buy her shop by threatening to detain her goods unlawfully. Regarding Section 15, which statement is correct?

It is immaterial whether the Indian Penal Code is in force in the place where the coercion is employed. Section 15 covers threats as well as acts, covers unlawful detention of property, and applies to prejudice to any person whatever.

  1. ACoercion exists only if the act is forbidden by the Indian Penal Code and the threat is actually carried out
  2. BCoercion requires the threat to be aimed only at the other party to the contract
  3. CIt is immaterial whether the Indian Penal Code is in force in the place where the coercion is employedCorrect
  4. DCoercion cannot involve property, only physical harm

Explanation

The Explanation to Section 15 says it is immaterial whether the Indian Penal Code is in force where the coercion is employed. Threatening to commit an act, or threatening to detain property, is enough, and the prejudice may be to any person whatever. The other options contradict these points.

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