Free Consent

• consensus ad idem

• Sec 13 defines consent as “two or more

persons are said to consent when they agree
upon the same thing in the same sense
Sec 14 of the contract Act as consent is said to
be free ,when it is not caused by

1. Coercion
2. Undue influence
3. Fraud
4. Misrepresentation
5. Mistake
 Coercion –Sec 15
• Coercion is
– committing or threatening to commit any act
forbidden by the Indian Penal code (for ex:
threatening to commit suicide)

– Unlawful detaining or threatening to detain any

property belonging to a person (for ex: refusing to
handover important documents unless relieved from
a debt)

– With the intention of causing any person to enter

into an agreement
• Ranganayagamma VS Alwarchetty
• Muthiah Vs Muthukaruppa
 Undue influence –Sec 16
• “A contract is said to be induced by undue
influence, where the relations 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”
• Relationship where undue influence is presumed
– Parent and child
– Guardian and ward
– Trustee and beneficiary
– Advocate and client
– Doctor and patient
– Guru and disciple

Allcard Vs Skinner
Distinguish between coercion and undue influence

Coercion Undue influence

Use of physical force Moral pressure

It may proceed from a It may proceed from the

stranger to contract parties to contract only
The contract is voidable at Contract is voidable or the
his option court may set aside it

Coercion involve criminal act There is no criminal act in

undue influence
 Fraud –Sec 17
• Fraud is wilful representation made by a party
to a contract with the intention to deceive the
other party or to induce such party to enter
into a contract.
• A false suggestion as to a fact known to be a false

• The active concealment of fact

• A promise made without any intention to

performing it
 Effect of fraud and remedies of fraud

• He can avoid the contract but within a reasonable

time

• He can insist to perform the contract on condition

• He can file a suit for for damages

 Misrepresentation- Sec 18
• Where a representation is wrongly made, it is
called misrepresentation

• It is an untrue statement made by one party to

the other which will induce the other

• Misrepresentation may be either innocent or

fraudulent.
Difference between misrepresentation and fraud
Misrepresentation Fraud
False statement made without any intention False statement made with an intention to
deceive the other party

It is not a tort (civil wrong) It is a tort (civil wrong)

Aggrieved party can avoid the contract Aggrieved party cannot only avoid the contract
but also claim damages

Aggrieved party cannot sue for damages Can sue for damages

Aggrieved party cannot avoid the contract if he Contract is voidable even though he has ways
has ways and means to find out truth with and means
ordinary diligence
• Derry Vs Peek
 Mistake
• Mistake is misconception or error

• It may be classified as

(a) Bilateral mistake Sec 20

where both the parties are under a mistake

(b) Unilateral mistake sec 22

if there is a mistake on the part of one party party alone and the other
party does not know of the mistake ,the contract is not voidable.
 Two kinds of mistake
• Mistake as to Indian Law
• Mistake as to foreign law

– Ignorantia juris no excusat