Free consent ,Indian Contract Act 1872

Share to your friends

Definition: Coercion involves the use of force or threat to make a person enter into a contract against their will.
Example: A threat to harm someone or their property if they do not agree to a contract.

Coercion is when one party to a contract compels the other party to enter into the contract by:

Committing or threatening to commit any act forbidden by the Indian Penal Code (IPC), or
Unlawfully detaining or threatening to detain any property, to the prejudice of any person, to compel that person to enter into a contract.

Definition: Undue influence exists when one party to the contract is in a position to dominate the will of the other and uses that position to obtain an unfair advantage.
Example: A doctor pressuring a patient to sign a contract while the patient is still under the influence of anesthesia.

Relationship of Influence: There must exist a relationship where one party has significant influence over the other, such as a fiduciary relationship (like doctor-patient, guardian-ward) or a relationship of trust and confidence.
Unfair Persuasion: The influencing party uses this position to persuade or manipulate the other party into entering into a contract that benefits the influencer to the detriment of the influenced party.
Weakening of Free Will: Undue influence undermines the free will and independent judgment of the influenced party, making them vulnerable to making decisions they would not otherwise have made.

Definition: Fraud involves any act committed with the intent to deceive another party, or to induce them to enter into a contract.
Example: Providing false information or concealing material facts to persuade someone to agree to a contract.

False Representation: The party committing fraud makes a false statement or conceals material facts that they know to be false.
Intent: There must be an intention to deceive the other party or to induce them to act upon the false information.
Reliance: The deceived party relies on the false representation and enters into the contract based on that reliance.
Damages: The deceived party suffers damages as a result of relying on the false representation.

Active Fraud: Direct misrepresentation of facts, such as lying about the condition or value of goods being sold.
Silence or Non-Disclosure: Failure to disclose material facts that one has a duty to disclose, which can also constitute fraud under certain circumstances.
Fraudulent Intent: The intent to deceive or induce the other party to act against their own interests.

Definition: Misrepresentation occurs when one party makes a false statement of fact to the other party, which induces them to enter into the contract.
Example: Misrepresenting the quality or condition of goods being sold.

False Statement: The misrepresentation involves a statement of fact that is untrue.

Materiality: The statement must be relevant and significant enough to influence the decision of the other party in entering into the contract.

Reliance: The deceived party relies on the false statement when deciding to enter into the contract.

Damages: The deceived party suffers harm or loss as a result of relying on the false statement.

Definition: Mistake occurs when both parties to the contract are mistaken about a fundamental aspect of the contract.
Example: A mutual misunderstanding about the subject matter or terms of the contract.

Mutual Mistake: Both parties make the same mistake regarding a fundamental fact essential to the contract. This mutual misunderstanding undermines the basis of the contract.
Unilateral Mistake: Only one party is mistaken about a fundamental fact, and the other party is aware of this mistake but does not correct it.
Common Mistake: Both parties are mistaken about the same fundamental fact, which affects the contract’s validity.

Fundamental Fact: The mistake must relate to a fact or assumption that is crucial to the contract’s subject matter or performance.
Impact on Contract: The mistake must be sufficiently serious to affect the parties’ understanding of their obligations under the contract.
Unawareness: The parties must have been unaware of the mistake at the time the contract was formed.

Voidability: Contracts affected by mistake may be voidable at the option of the party adversely affected by the mistake.
Rescission: The party suffering from the mistake can seek to rescind (cancel) the contract and potentially recover any benefits conferred under the contract.
Exceptions: Courts may refuse to grant relief for mistake if it was due to negligence or if the risk of the mistake was assumed by the mistaken party.

A Scholar