When the consent is obtained by coercion, the contract is considered voidable. Here's a detailed explanation:
Coercion:
Coercion refers to the act of forcing someone to do something against their will by using threats, intimidation, or other forms of pressure.
Effects of Coercion on Contracts:
When consent to a contract is obtained through coercion, it affects the validity of the contract. The following are the effects of coercion on contracts:
1. Voidable Contract:
A contract obtained through coercion is considered voidable. This means that the innocent party has the option to either enforce the contract or reject it. They have the right to void the contract if they can prove that their consent was obtained through coercion.
2. Rescission of the Contract:
The party who was coerced can choose to rescind the contract, which means to cancel or terminate it. By doing so, they are released from their obligations under the contract.
3. Time Limit:
It's important to note that the innocent party must exercise their right to void the contract within a reasonable time. If they delay in taking action, they may lose their right to rescind the contract.
4. Damages:
In certain cases, the innocent party may also be entitled to claim damages for any losses they suffered as a result of the coercion.
Summary:
In conclusion, when consent is obtained by coercion, the contract is considered voidable. The innocent party has the option to either enforce or reject the contract, and they can choose to rescind it within a reasonable time. They may also be entitled to claim damages for any losses incurred.