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Which of the following would not amount to coercion under the Indian Contract Act, 1872?
Compulsion of law
To threaten a criminal prosecution
Both (a) and (b)
Neither (a) nor (b)
Cases - Andhra Sugars Ltd. vs. State of A.P., Workmen of Appin Estate vs. Industrial Tribunal - Statutory Compulsion is no coercion When a Statue requires a contract to be entered into the consent in such a case is not deemed to be caused by coercion, undue influence, fraud, misrepresentation or mistake. In Andhra Sugars Ltd. Vs. State of A.P. (1968) if any cane grower offered to sell his sugarcane to a factory in a certain zone, the factory was bound to accept the offer under the Andhra Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1961, and accordingly the agreement was entered into. It was held that in such a case even though there was a legal compulsion for the factory to make the agreement, the agreement could not be said to be entered into by lack of free consent, and there was no coercion either.
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