Coercion and its Effect on the Validity of a Contract

Coercion is a term used in contract law to describe a situation where one party is forced or compelled to enter into a contract against their free will. It involves the use of threats, physical force, or undue influence to obtain the consent of the other party. Coercion is considered as a form of duress, which undermines the voluntary nature of a contract.

Effects of Coercion on the Validity of a Contract

Coercion has significant implications on the validity of a contract. When a contract is entered into under coercion, it is generally considered voidable, meaning that the innocent party has the option to either affirm or rescind the contract. The following points outline the effects of coercion on the validity of a contract:

1. Lack of Free Consent
Coercion negates the essential element of free consent, which is necessary for a contract to be valid. Free consent implies that the parties involved have willingly and voluntarily agreed to the terms of the contract. When coercion is present, the consent is obtained under duress, and the party coerced does not have a genuine choice in the matter.

2. Absence of Genuine Agreement
Coercion renders the agreement between the parties void of genuine consensus. The coerced party enters into the contract against their true intentions, and their agreement is not a true reflection of their wishes. Therefore, the contract lacks the element of mutual assent required for its validity.

3. Unfair Advantage
Coercion allows the coercing party to gain an unfair advantage over the coerced party. The coercing party exploits the vulnerability or weakness of the other party to force them into the contract. This undermines the principles of fairness and equality in contract law.

4. Legal Remedy
The party subjected to coercion has the legal remedy to rescind the contract. They can choose to avoid the contract and be released from their obligations. Alternatively, they may affirm the contract if they willingly choose to do so, without any influence or pressure from the coercing party.

5. Burden of Proof
In cases of coercion, the burden of proof lies on the party alleging coercion. They need to provide sufficient evidence to establish that coercion was present and that their consent was obtained involuntarily. This may include presenting witnesses, documents, or any other relevant evidence.

Conclusion
Coercion undermines the voluntary nature of a contract and is considered a form of duress. It leads to the lack of free consent, absence of genuine agreement, and an unfair advantage for the coercing party. As a result, contracts entered into under coercion are generally considered voidable, giving the innocent party the option to affirm or rescind the contract.