question_answer

Problem 8 Rules A. The act of using threats to force another person to enter into a contract is called coercion. B. The act of using influence on another and taking undue advantage of that person is called undue influence. C. In order to prove coercion, the existence of the use of threat, in any form and manner, is necessary. If coercion is proved, the person who has been so threatened can refuse to abide by such contract. D. In order to prove undue-influence, there has to be a pre-existing relationship between the parties to a contract. The relationship has to be of such a nature that one is in a position to influence the other. If it is proven that there has been undue influence, the party who has been so influenced need not enforce the contract or perform his obligations under the contract. Facts             Aadil and Baalu are best friends. Aadil is the son of multi millionaire business person, Chulbul who owns Maakhan Pharmaceuticals. Baalu is the son of a bank employee, Dhanraj. One day, Aadil is abducted from his office by Baalu. Chulbul receives a phone call from Dhanraj telling him that if he does not make Baalu the CEO of Maakhan Pharmaceuticals, Aadil will be killed. Chulbul reluctantly agrees to do the same. Subsequently Chulbul and Baalu sign an employment contract. However, as soon as Aadil is released and safely returns home, Chulbul tells Baalu that he shall not enforce the employment contract. Baalu and Dhanraj are not sure as to what is to be done next.

In the above fact situation

A)  there is undue influence exercised by Dhanraj on Baalu

B)  there is undue influence exercised by Aadil on Chulbul

C)  there is no undue influence

D)  None of the above