Table of contents |
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Introduction |
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What Is a free consent? |
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Coercion (Section 15) |
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Undue Influence (Section 16) |
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Fraud (Section 17) |
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Misrepresentation (Section 18) |
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Mistake (Section 20) |
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Every agreement can be considered a contract if it meets certain criteria: it must be formed with the free consent of the parties, involve individuals who are legally capable of entering into a contract, and pertain to a lawful consideration and object. This article focuses on the concept of free consent and explores the factors that can compromise the free consent in a contractual agreement.
"Free consent" is defined in Section 14 of the Indian Contract Act, 1872. In a contract, consent is considered "free" when it is not influenced or tainted by any of the following factors:
If consent in a contract is influenced by any of these elements, the contract can be voided or considered voidable.
Coercion, as defined in Section 15, occurs when consent is obtained through the application of pressure using any of the following methods:
For instance, if 'A' threatens to commit suicide, an act forbidden by the IPC, unless 'B' agrees to enter into a contract, such a contract can be voided.
If a contract is formed due to coercion, it can be annulled, and the parties involved are relieved from their obligations to fulfill the terms of the contract.
Undue influence, as defined in Section 16, occurs when there is a relationship between the parties to a contract in which one party has the power to control or manipulate the decisions of the other party and uses that position to gain an unfair advantage.
So, who can exert this dominant influence?
Fraud, as defined in Section 17, refers to any action performed by an individual (or by an agent on their behalf) with the intention to deceive another person and induce them into entering a contract.
The following actions constitute fraud:
A contract resulting from fraud is considered voidable. The deceived party has the right to annul the contract and seek damages from the other party.
However, if a person remains silent about a fact that could impact their willingness to enter into a contract, it is not considered fraud unless one of the following conditions is met:
Misrepresentation, as defined in Section 18, encompasses three aspects:
However, if a person has the means to discover the truth with ordinary diligence, they cannot claim misrepresentation.
When consent has been obtained due to misrepresentation, the affected person has the right to seek damages and initiate a lawsuit to return the party to their original state.
Where both the parties to the contract are in mistake as to the subject matter of fact which is essential to the contract, then such a contract is void.
However, a mere erroneous or incorrect opinion as to the value of the thing which is the part of the subject matter of the contract is not considered as a mistake.
If ‘A’ buys a bike thinking that it is of Rs. 1 Lakh and pays the same amount for it, however, it was only worth Rs. 70 thousand, the contract remains valid. ‘A’ cannot avoid the contract on the ground of mistake due to his own ignorance.
Following are the types of mistakes:
Consent is the most critical part of the contract and must be handled with utmost care. A contract is voidable if it is made in the absence of a free will. So, in order to constitute a free consent, it should be kept in mind that the consent is not backed by coercion, undue influence, fraud, misrepresentation or mistake.
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