Cheat Sheet: Free Consent

1. Definition and Basic Principles

1.1 Free Consent - Section 13

1.2 Elements Vitiating Free Consent - Section 14

• Coercion (Section 15)
• Undue Influence (Section 16)
• Fraud (Section 17)
• Misrepresentation (Section 18)
• Mistake (Section 20, 21, 22)

2. Coercion - Section 15

2.1 Definition and Elements

2.2 Important Case Laws

2.3 Effect and Remedies

• Contract voidable at option of party whose consent was obtained by coercion (Section 19)
• Aggrieved party may rescind contract
• Court may set aside contract or refuse to enforce it
• Party may insist on performance if chooses not to rescind
• Section 72 applies for restitution of benefits received

3. Undue Influence - Section 16

3.1 Definition and Requirements

3.2 Relationships Where Presumed

• Parent and child
• Guardian and ward
• Trustee and beneficiary
• Solicitor and client
• Doctor and patient
• Spiritual advisor and devotee
• Fiancé and fiancée (in certain circumstances)

3.3 Distinguished from Coercion

3.4 Important Cases

3.5 Effect

• Contract voidable at option of party whose consent was obtained by undue influence
• Court may set aside contract or enforce on modified terms
• Burden on dominant party to prove absence of undue influence
• Section 19A allows court to grant relief on such terms as it thinks fit

4. Fraud - Section 17

4.1 Definition and Essential Elements

4.2 Situations Where Silence is Fraud

• Duty to speak imposed by law (uberrimae fidei contracts - insurance, partnership)
• Silence equivalent to speech (half-truths)
• Changed circumstances make earlier statement false
• Fiduciary relationships requiring disclosure
• Active concealment of material facts

4.3 Key Requirements

4.4 Important Cases

4.5 Effect and Remedies - Section 19

• Contract voidable at option of aggrieved party
• Party may rescind contract
• Party may insist that contract be performed and sue for damages for deceit under Section 19
• Right to rescind lost if third party rights intervene, or affirmation occurs, or restitution impossible
• Damages available even if contract not rescinded

5. Misrepresentation - Section 18

5.1 Definition and Types

5.2 Distinguished from Fraud

5.3 Effect and Remedies

• Contract voidable at option of party whose consent obtained by misrepresentation
• Aggrieved party may rescind contract
• No right to claim damages (unlike fraud)
• Party may insist on performance if chooses not to rescind
• Right to rescind lost if restitution impossible, third party rights intervene, or contract affirmed

5.4 Key Cases

6. Mistake - Sections 20, 21, 22

6.1 Types of Mistake

6.2 Bilateral Mistake of Fact - Section 20

6.3 Important Cases on Bilateral Mistake

6.4 Unilateral Mistake - Section 22

6.5 Mistake of Law - Section 21

6.6 Key Cases on Unilateral Mistake

7. Effect of Vitiated Consent - Section 19, 19A, 64, 65

7.1 Voidable Contracts - Section 19

7.2 Right to Rescind - Section 19

• Aggrieved party may insist contract be performed and compensation paid
• Party may rescind contract and refuse performance
• If consent obtained by fraud, party entitled to damages even without rescission
• Right to rescind is optional; party may affirm contract

7.3 Loss of Right to Rescind

7.4 Compensation and Restitution - Sections 64, 65

7.5 Void Contracts

• Bilateral mistake of fact makes contract void ab initio (Section 20)
• Void contract creates no rights or obligations
• Restitution required under Section 65
• No question of rescission as contract never came into existence

8. Special Applications and Doctrines

8.1 Doctrine of Uberrimae Fidei

• Contracts of utmost good faith requiring full disclosure
• Insurance contracts: insured must disclose all material facts
• Partnership: partners must disclose all material information
• Family arrangements: full disclosure required
• Silence amounts to fraud in such contracts

8.2 Caveat Emptor vs. Duty to Disclose

8.3 Non Est Factum

8.4 Burden of Proof

9. Comparison Table - Key Distinctions

10. Important Section References