Module: | Fundamentals of Contracts
Q2: If a bank obtains a customer's signature on a loan document, by using coercion, misrepresentation, or undue influence, what is the legal status of that contract?
✅ Correct Answer: A
For a contract to be valid, consent must be free.
If consent is obtained via coercion, misrepresentation, or undue influence (as per the Indian Contract Act), the contract becomes voidable at the option of the aggrieved party.
If consent is obtained via coercion, misrepresentation, or undue influence (as per the Indian Contract Act), the contract becomes voidable at the option of the aggrieved party.