WHAT IS FREE CONSENT?

Two or more person are said to consent when they agree upon the same thing in the same sense.:section 13 of indian contract act. Consent:-means that the parties should have identity of mind. Free consent: consent is said to be free when its not caused by: 1. Coercion(as defined in section 15)

CONT

2. Undue influence(as defined in section 16) 3. Fraud(as defined in section 17) 4. Misrepresentation(as defined in section 18) 5. Mistake.(subject to provision of sections 20,21 &22)

COERCION
Forcibly compelling a person to enter into contract. coercion if the committing or threating to commit,any act forbidden by the indian penal code,or the unlawful detaining,or threatening to detain,any property,to the prejudice of any person whatever,with the intention of causing any person to enter into agreement.(sec 15 of in indian contract act)

UNDUE INFLUENCE
Means the unfair use of ones superior power in order to obtain the consent of the person who is in the weaker position. A contract is said to be induced by undue infulencewhere i)the relation subsisting between the parties are such that one of the parties is in a position to dominate the will of the other, and ii)uses the position to obtain an unfair advantage over the other.(Sec 16(1) of Indian contract act.

POINTS OF DIFFERENCE
COERCION Definition UNDUE INFLUENCE Is an act based upon the use of Is a act based upon the use physical force,punishable under indian of moral force,which is penal code.(Sec 15) not punishable.(Sec 16) Can be employed by any person even by stranger to the contract Parties need not have any relationship in between themselves Is employed be any of the parties to the contract Must have fuduciary relationship One of the parties has the position to dominate the will of the other. Not punishable under it.

Parties Relationship of the parties

Dominance of None of parties have dominating one party position to dominate the will of the other party Punishment Is an act punishable under indian penal code

FRAUD
Intentional,deliberate or wilful misstatement of facts. Fraudmeans and inculdes any of the following acts committed by a party to a contract or with his connivance,or by his agent,with intent to deceive another party thereto or his agent,or to induce him to enter into the contract:

ESSENTIALS OF FRAUD
Making a false suggestion as to a fact Active concealment of a fact A promise made without any intention of performing it Any other act fitted to Deceive Any such act or Omission as the law specially Declared to be fraudulent The party subjected to fraud must have suffered some loss.

MISREPRESENTATION
What is Representation? Statement or assertion Made by one party to the another Before or at the time of contract Regarding some facts relating to it. What is Misrepresentation? Representation which is false or misleading.

ESSENTIALS OF MISREPRESENTATION
It would be relevant if it satisfies the following requirements: It must be false, but the person who made it honestly believes it to be true. It must relate to the material facts of the contracts. it must be made before the conclusion of the contract.

DIFF.BETWEEN MISREPRESENTATION AND FRAUD.

MISREPRESENTATION No intention to deceive the other party Not an act punishable by Indian penal code. Hence it is not an? Its is an innocent wrong.

FRAUD Intention to deceive Can become a criminal act punishable under Indian penal code. Its is intentional or wilful wrong.

MISTAKE
An erroneous belief concerning something. Or incorrect belief which leads one party to misunderstand the other. Types of Mistakes: 1. Mistake of facts 2. Mistake of law Mistake of facts are again classified into two: 1. Bilateral Mistake 2. Unilateral mistake

Mistake

Mistake of Fact (Sec 20)

Mistake of Law (Sec.21)

Bilateral Mistake

Unilateral Mistake

Law of the land

Foreign Law

CONT..
BILATERAL MISTAKE A mistake in which both the parties to an aggrement are confused about the facts which are essential to the aggrement. UNILATERAL MISTAKE  A mistake in which only one of the parties to an aggrement is confused about the facts which are essential to the aggrement.

MISTAKE OF LAW

Mistake of law is of two types: Mistake of law of the land Mistake of foreign law.