Skip to content

CMA Intermediate · Business Laws and Ethics · Indian Contracts Act, 1872

Seema is induced to sell her interest in an estate to Tarun. Tarun, who has learned of the death of the person from whom she was to inherit, deliberately prevents that news from reaching her. Which is correct?

The sale is voidable at Seema's option. Tarun actively prevented her from learning the death, so her consent was caused by fraud, and section 19 makes such a contract voidable at the option of the party whose consent was so caused.

  1. ASale is valid because Tarun made no false statement
  2. BSale is void because no consideration was paid
  3. CSale is voidable at Seema's option, as the concealment was fraudulentCorrect
  4. DSale is voidable only at Tarun's option

Explanation

Illustration (e) to section 19 treats preventing intelligence of a death from reaching a person and thereby inducing a sale as making the sale voidable at the option of the person deceived. Option A is wrong because active concealment can amount to fraud without a false statement.

Did you get it right without looking?

One question tells you little. A timed set on Indian Contracts Act, 1872 shows your real accuracy, how long you take and where you lose marks.

Practise Indian Contracts Act, 1872Free diagnostic mock

More Indian Contracts Act, 1872 questions