Chapter 4

Question 1

Coercion

Answer 1

Coercion is
‘’ the committing ( or threatening to commit) any act forbidden by Pakistan Penal Code,
unlawful detaining (or threatening to detain ) any property,
with the intension of causing other person to enter into an agreement or agree to certain terms and conditions.”

Question 2

Party exercising coercion

Answer 2

Party exercising coercion may be a stranger or a relative.
It does not matter if Pakistan Penal Code is not enforceable at the place where coercion is applied

Question 3

Burden of proof for coercion

Answer 3

Party rescinding the contract will have to prove that there was coercion at the time of contract

Question 4

Effects of coercion

Answer 4

The contract is voidable at the option of aggrieved party. If the contract is rescinded, parties will restitute (ie restore ) benefits if any

Question 5

Free consent

Answer 5

Consent is not free when there is coercion , undue influence, mistake , fraud, misrepresentation.

Question 6

Expressively declared as void agreements

Answer 6

Illegal agreements
Impossible agreements
uncertain agreements
agreement in restrain of marriage (exception for minor)
agreement in restrain of legal proceedings
agreement in restrain of trade wagering agreement
agreement with incompetent person
agreement without consideration

Question 7

Wagering Agreement

Answer 7

Agreement to pay money or other valuable items to other person on happening or not happening of a future uncertain event in which party has no real interest is called wagering agreement e.g bet on match , bet on rain, gambling, lottery.

Question 8

Agreements not considered wagering agreements.

Answer 8

prize competitions which are games of skill picture puzzles, athletic competition .
agreement to pay winner of a horse race (prize of rs 500 or more)

Question 9

Effects of illegal agreements

Answer 9

illegal agreements are void
no remedy is allowed in case of breach of illegal agreements