Introduction to LAW
FREE
CONSENT
FREE CONSENT
According to Sec 10 of the Indian Contract Act one of the essentials of a valid contract is “Free Consent”
Sec 13 defines “consent” as “Two or more persons are said to consent when they agree upon the same thing in the same sense”.
According to Sec 14, consent is said to be free when it is not caused by:
1.Coercion
2.Undue influence
3.Fraud
4.Misrepresentation
5.Mistake
COERCION
According to Sec 15 coercion means “Committing or threaten to commit any act forbidden by Indian Penal Code 1860 or unlawful detaining or threating to detaining any other persons property with a view to enter into an agreement.
It is immaterial whether the IPC is or is not in force where the coercion is employed”
The threat amounting to coercion need not necessarily be from a party to contract , it may also proceed from a stranger to the contract.
Important cases:
1.Chikkim Ammiraju vs. Seshamma:
In this case a person threatened his wife and son that he would suicide if she doesn’t transfer her property in his brother’s favour. The wife and son executed the release of the deed under the threat . Held the threat of suicide amounted to coercion within Sec 15 and the release deed was therefore voidable.
2.Muthia
vs.
Muthu
Karuppa:
An agent refused to hand over the account books of a business to the new agent unless the principal released him from all liabilities. The principal had to give a release deed. It was held that the deed was given under coercion and was voidable at the option of the principal.
UNDUE INFLUENCE
Sometimes a party is compelled to enter into a contract against his will as a result of unfair persuasion by the other party.
Section 16 defines undue influence as follows
A contract is said to be induced by “undue influence”where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that
CONSENT
FREE CONSENT
According to Sec 10 of the Indian Contract Act one of the essentials of a valid contract is “Free Consent”
Sec 13 defines “consent” as “Two or more persons are said to consent when they agree upon the same thing in the same sense”.
According to Sec 14, consent is said to be free when it is not caused by:
1.Coercion
2.Undue influence
3.Fraud
4.Misrepresentation
5.Mistake
COERCION
According to Sec 15 coercion means “Committing or threaten to commit any act forbidden by Indian Penal Code 1860 or unlawful detaining or threating to detaining any other persons property with a view to enter into an agreement.
It is immaterial whether the IPC is or is not in force where the coercion is employed”
The threat amounting to coercion need not necessarily be from a party to contract , it may also proceed from a stranger to the contract.
Important cases:
1.Chikkim Ammiraju vs. Seshamma:
In this case a person threatened his wife and son that he would suicide if she doesn’t transfer her property in his brother’s favour. The wife and son executed the release of the deed under the threat . Held the threat of suicide amounted to coercion within Sec 15 and the release deed was therefore voidable.
2.Muthia
vs.
Muthu
Karuppa:
An agent refused to hand over the account books of a business to the new agent unless the principal released him from all liabilities. The principal had to give a release deed. It was held that the deed was given under coercion and was voidable at the option of the principal.
UNDUE INFLUENCE
Sometimes a party is compelled to enter into a contract against his will as a result of unfair persuasion by the other party.
Section 16 defines undue influence as follows
A contract is said to be induced by “undue influence”where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that