Car bought under a threat to life and resold before rescission

Provisions.

1. Coercion makes the contract voidable. Coercion means committing, or threatening to commit, an act that the Indian Penal Code forbids, with the intention of causing a person to enter into an agreement (s. 15); a contract induced by coercion is voidable at the choice of the party whose consent was obtained in that way (s. 19).
2. Sale under a voidable contract (s. 29). Where the seller has obtained possession of the goods under a contract voidable for fraud, misrepresentation, coercion or undue influence, and he sells them before that contract is rescinded, the buyer acquires a good title, provided he buys in good faith and without notice of the seller's defect of title: X fraudulently obtains a diamond ring from Y and, before Y avoids the contract, sells it to Z, an innocent purchaser; Z gets a good title.

Application. A obtained B's car for 350000 by threatening B's life. That is coercion, so the contract is voidable at B's option. Before B could rescind, A sold the car to C for 550000. If C bought in good faith, without notice of the coercion, C gets a good title under section 29.

Conclusion. The contract between A and B is a voidable contract. If C bought in good faith and without notice of the coercion, B cannot take the car back from C, who bought before the contract was rescinded, and B's remedy is against A; if C knew of the coercion, he gets no good title and B may recover the car.