FREE CONSENT

CONSENT…

Section 13 of the Act defines Consent as “Two

or more persons are said to consent when they
agree upon the same thing in the same sense.

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 FREE CONSENT…
Consent is said to be free when it is not caused
by:
1. Coercion (section 15)
2. Undue Influence (section 16)
3. Fraud (section 17)
4. Misrepresentation (section 18)
5. Mistake (section 20,21 and 22)

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 Coercion (section 15)
Section 15 of the Act define Coercion as “Coercion is
the committing, or threatening to commit, any act
forbidden by the Indian Panel 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 an
agreement.”

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 Example NO.-1

A gives sever beating to B and makes him

sign a promissory note for Rs. 50,000 in his
favour. A has employed coercion.

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 Example NO.-2

A threatens to kill B,if he does not sell his

house to him for Rs. One lakh. B agrees to
sell his house to A. The consent of B has
been induced by coercion.

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 EFFECT OF COERCION
The effect of coercion on the validity of a
contract is contained in section 19 of the
Indian contract Act,1872.The said action
provides that when consent to an agreement
is caused by coercion…,the agreement is a
contract voidable at the option of the party
whose consent was so caused. In other words,
the party whose consent was obtained by
coercion can avoid the contract, if it so likes.

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 UNDUE INFLUENCE
According to section 16(1) of the Act, “ A contract is
said to be influenced by undue influence where 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 uses that position to obtain an unfair
advantage over the other.”

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 EXAMPLE

A, a money lender advances Rs. 100 to B, an

agriculturist, and, by undue influence,
induces B to execute a bond for Rs. 200 with
interest at 6 percent per month. The court
may set the bond aside, ordering B to repay
Rs. 100 with such interest as may seem just.

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EFFECT OF UNDUE INFLUENCE

Section 19 provides that when consent to

an agreement is caused by undue
influence, the agreement is contract
voidable at the option of the other party
whose consent was so caused.

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 REPRESENTATION

A statement of fact which one party makes in

the course of negotiations with a view to
inducing the other party to enter into a contract
is known as representation.

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 MISREPRESENTATION

A representation when wrongly made ,either

innocently or intentionally, is a
misrepresentation.

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 EXAMPLE
A says to B who intends to purchase his land,
“my land produces 50 quintals of rice per
acre.” A believes the statement to be true
although he did not have sufficient ground
to make a statement. B buys the land from
A. It turns out that the land produces 12
quintal of rice per acre. This is a
misrepresentation.

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 ESSENTIALS OF
MISREPRESENTATION
1.The representation must be one of the fact.
2.It must be made before entering into the
contract.
3.The representation must be innocently made
without any intention to deceive the other
party.
4.The representation must have induced the
other party to enter into the contract.

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EFFECT OF MISREPRESENTATION

When consent to an agreement is caused by

misrepresentation, the agreement is a contract
voidable at the option of the party whose consent
was so caused. Therefore, the aggrieved party can
rescind the contract.Alternatively,the aggrieved
party may, if he thinks fit, insist that the contract
shall be perform ,and that he shall be put in the
position in which he would have been if the
representation made had been true.

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 FRAUD
Fraud exist when it shows that-
1.A false representation has been made
(a) Knowingly
(b) without belief in the truth
(c) recklessly, not caring whether it is true or false, and the
maker intended to other party to act upon it.
2.There is a concealment of a material fact or that there is a
partial statement of a fact in such a manner that the
withholding of what is not stated makes that which is stated
false.

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 ESSENTIAL ELEMENTS OF FRAUD
1.There must be a representation or assertion and
it must be false.
2.The representation must relate to a material fact
which exist now or existed in the past.
3.The representation must have been made before
the conclusion of the contract with the intention
of inducing the other party to act upon it.
4. The representation or statement must have
been made with the knowledge of its falsity or
without belief in its truth or recklessly, not caring
whether it is true or false.

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5.The other party must have been induced to act
upon the representation or assertion.
6.The other party must have been relied upon the
representation and must have been deceived.
7.The other party ,acting on the representation or
assertion ,must have subsequently suffered from
loss.1818

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 MISTAKE
Mistake is defined as an erroneous belief
concerning something.

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 KINDS OF MISTAKE

1. Mistake of Law
2. Mistake of fact

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 TYPES OF MISTAKE OF LAW
1.Mistake of law in force in India.

Ignorantia juris non excusat

means
Ignorance of law is no excuse

2.Mistake of foreign law.

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 TYPES OF MISTAKE OF FACT

1. Bilateral mistake
2. Unilateral mistake

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 BILATERAL MISTAKE

When both the parties to an agreement

are under a mistake as to a matter of fact
essential to an agreement is void.In such
case the agreement is void.

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VARIOUS CASES UNDER BILATERAL
MISTAKE…
1. Mistake as to the existence of sublect matter.
2. Mistake as to the identity of subject matter.
3. Mistake as to the quality of subject matter.
4. Mistake as to the quantity of subject matter.
5. Mistake as to the title of subject matter.
6. Mistake as to the possibility of performing the
contract.
Physical impossibility
Legal impossibility

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 UNILATERAL MISTAKE

When in a contract only one party is

mistaken regarding the subject matter or
in expressing or understanding the terms
or the legal effect of the agreement.

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 EXCEPTIONS TO UNILATERAL
MISTAKE
1. Mistake as to the identity of the person
contracted with.
2. Mistake as to the nature of ontract.

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