CAF-4 · Chapter 4 · Question 5 of 15
Azam, a moneylender, advances Rs. 100,000 to a distressed farmer, Babar, and by using his influence, makes Babar sign a bond for Rs. 200,000 with 50% interest. This is a case of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Undue Influence
Explanation
Undue influence occurs when one party dominates the will of the other to obtain an unfair advantage, especially when the other party is in economic distress.
More Free consent MCQs
- Q7A contract is not voidable on the ground of fraud if the party whose consent was so caused had the means of discovering the truth with:
- Q8According to the Contract Act, 1872, consent is said to be 'free' when it is NOT caused by coercion, undue influence, fraud…
- Q9If a party's consent was caused by a 'mistake of law' in force in Pakistan, what is the status of the contract?
- Q10A unilateral mistake by one party as to a matter of fact generally makes the contract:
- Q11Which of the following acts constitutes 'coercion'?