INTRODUCTION

According to Section 10 of the Indian Contract Act, 1872, All agreements are
contracts if they are made by the free consent of parties competent to contract,
for a lawful consideration and with a lawful object, and are not hereby expressly
declared to be void. Consent is said to be free when it is not obtained by Coercion,
or Undue Influence, or Fraud or Misrepresentation or Mistake.

coercion occurs when a contract agreement is entered into under conditions

involving harm or threats of harm. State and federal laws require contracts to be
entered into "knowingly" and "willingly" by all parties. Thus, if a party signs a
contract due to coercion, the contract generally will not be considered legally
enforceable.

The rule regarding coercion applies both to the entire contract as well as
individual terms in the contract. That is, the parties must willingly agree to the
contract as a whole, as well as the various terms, definitions, and requirements
laid out individually in the agreement.

  
                            MEANING
Coercion : Meaning -

                  If a person commits or threatens to commit an act forbidden by the

Indian Penal Code with a view to obtaining the consent of the other person to an
agreement, the consent in such case is deemed to have been obtained by
coercion. In simple words coercion means "making a person to give his consent by
force or threat."

      Sec. 15 defines coercion as follows:

“Committing or threatening to commit, any act forbidden by the Indian Penal

Code, or 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 an agreement.”

Thus coercion means compelling a person to enter into a contract by committing

or threatening to commit an unlawful act or by unlawful detaining or threatening
to detain. The properties of coercion are as under:

1. Committing or threatening to commit any act forbidden by the Indian

Penal Code:

If a person commits an act or threatens to commit an act which is forbidden by

the Indian Penal Code, 1860 he is applying coercion. Examples:
 1) A threatens to shoot B if he does not sell his scooter. The consent of B has
been obtained by coercion.

2. Unlawful detaining or threatening to detain any property

If a person unlawfully detains or threatens to detain any property he is applying

coercion.

Example:

A railway company refused to deliver the goods unless unlawful charges were
paid. A paid the charges to obtain the goods. A can recover the unlawful charges
paid by him as his consent was not given freely.

3. The act of coercion may be directed at any person and not necessarily at the
other party to the agreement:

The Act of coercion may be directed against any person, and not necessarily
against the other party to the contract. Similarly, it need not necessarily proceed
from a party to the contract. It may proceed even from a stranger to the contract.
Examples:

(1) A threatens to shoot B if he does not sell his car to A. B agrees to sell the car.

(2) A threatens to shoot B if C does not sell his car to A. C agrees to sell the car.

4. The act of coercion must be done with the object of inducing or compelling any
person to enter into an agreement:

It should be noted that it is not necessary that the Indian Penal Code should be
applicable at the place where coercion was employed.

Example:

A and B were returning to India from England by a ship. When the ship was
passing through the Suez Canal. A threatened B to throw him into the canal if he
(B) did not sign a promissory Note for Rs. 1,000. B signed and gave a Promissory
Note to A. B on reaching Mumbai refused to pay the amount of the Promissory
Note. A filed a suit against B to recover the amount. A will not succeed as he had
obtained the Promissory Note by coercion.

It should be noted that although Indian Penal Code is not applicable in Suez Canal
area (as it is applicable only in Indian Territory), yet A has employed coercion.
Whether Threat to Commit Suicide Amounts To Coercion :

In India, an attempt to commit suicide is an offence. However, in a landmark

judgement, the Supreme Court has held that attempt to commit suicide is not an
offence.

Consequences of Coercion

When an agreement is made under coercion, the consent is not free. Hence it is
voidable at the option of the party whose consent was not free.

Effects of coercion

1 the contract becomes voidable at the option of the aggrieved person/party,the

aggrieved party/person has two option :

A) May compel the other party for specific performance (it deems fit)

COERCION VS DURESS (ENGLISH LAW)

May set a side the contract. Coercion and Duress are two commonly
confused terms under the Law of Contract. Under Section 14 the
Indian Contract Act, 1872  states that a consent is free when it is
not caused by coercion. Section 15 of the Act defines coercion
as the committing or threatening 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, with the
intention to cause any person to enter into an agreement.
The term Duress corresponds to Coercion in English law. However
Coercion under the Indian Contract Law has a wider amplitude
than Duress under the English Law.

Coercion Duress

Duress can be employed only

Coercion can be employed against against the life or liability of other
any person including a stranger. party to the contract or members
of his family.

Immediate violence subsequent to

Duress must be such that it causes
coercion is not an essential
immediate violence.
element.

Duress may be employed only by

Coercion may be employed against
the party to the contract or his
any person.
agent.

Unlawful detention of goods is a Unlawful detention is not duress

kind of coercion. under the English Law.
CASE LAWS

Chikham Ammiraju v. chikkam seshma (1917)

Fact: 

              In the instant case, the Husband Held held out a threat of committing
suicide to his wife and son if they did not execute a release deed in favor of his
brother. The wife and son executed the release deed under the threat.

Issue / Questions: 

            The question was whether a threat of committing suicide amounts to

coercion?

Held :  
            
             Court Held that the threat of suicide amounted to coercion within Section
15 of the Indian Contract Act, 1872 and the release deed was, therefore, voidable.
Muthiah chetti v. Karuppan chettiar (AIR 1927 Mad 852)

An agent refused to hand over account books to the new agent unless the
principal released from laibility in respect of the past transactions .The principal
gave the release deed in demanded .It was held that release deed was given
under coercion and was voidable at the option of principal .

Ranganayakamma v. Alwar Sethi,( 1890 ILR 13 Mad 214)

A young widow (girl) of 13 years was compelled to adopt a boy by the relatives of
her husband. The relatives prevented the removal of the dead body of her
husband unless she agreed to adopt the body. Later on, she refused to adopt the
boy. The Court held that her consent was not free but was vitiated by coercion
and, therefore, set aside the adoption. Obstructing a dead body from being
removed is an offence under the Indian Penal Code
Andhra sugar ltd V. state of A,P (AIR 1968 SC 599)
It held that when statute requires a contract to be entered into the legal
compulsion for the factory to make an agreement ,the agreement could not be
entered into by lack of free consent, and there was no coercion either.