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CSEET · Business Laws and Management · Elements of Law of Contracts

Match the situation with the correct legal effect under the Indian Contract Act, 1872: (P) Consent caused by coercion; (Q) A fraud that did not cause the other party's consent; (R) Contract to pay B a sum when B marries C, and C dies unmarried.

Coercion makes the contract voidable, a fraud that did not cause consent does not make it voidable, and a contingent contract becomes void when the event becomes impossible, as when C dies without marrying B.

  1. AP: voidable; Q: does not render contract voidable; R: becomes voidCorrect
  2. BP: void; Q: voidable; R: enforceable
  3. CP: voidable; Q: void; R: voidable
  4. DP: void; Q: does not render contract voidable; R: enforceable

Explanation

Section 19 makes a contract caused by coercion voidable and its Explanation says a fraud which did not cause consent does not render a contract voidable. Under section 32, if the contingent event becomes impossible, as when C dies unmarried, the contract becomes void.

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