Free Consent

Coercion, Undue Influence,

Fraud & Misrepresentation
(CUFM)
 Consent
• Two persons are said to consent when
they agree upon the same thing in the
same sense.
• Thus, the analysis of the above definition
reveals that both the parties must be at the
same frequency of mind at the time of
entering into a contract.
Effect of absence of consent
• The effect of absence of consent is that the
agreement is not valid & not enforceable by law.
Example: Effect of absence of consent
• X has one Alto and one Coure. He wants to sell
Coure. Y does not know that X has two cars. Y
offers to buy X’s Vehicle (Alto)for Rs. 400,000. X
accepts the offer thinking it to be an offer for his
Coure.
• Here, there is no identity of minds in respect of the
subject matter. Hence, there is no consent at all and
hence there is no agreement.
Effect of absence of consent
• The effect of absence of free consent is
that the contract becomes voidable if the
consent is obtained by coercion or undue
influence or fraud or misrepresentation at
the option of the party whose consent was
so caused
• but if the consent is obtained by mistake
then agreement may be void-ab-initio or
contract is not voidable depending upon
the nature of the mistake. [Section 19A]
 Free Consent
• Consent is said to be free when it is not caused
by coercion, undue influence, fraud,
misrepresentation or mistake.

• In other words if consent is obtained by

coercion, undue influence, fraud,
misrepresentation, there is no free consent, and
contract is voidable at the option of aggrieved
party.
 Consent of Parties to the Contract

Consent is not
Consent is Free
Free

No elements of the following Existence of of the Following

• Coercion
• Undue Influence
• Fraud
• Misrepresentation
• Mistake

CUFMM
COERCION
 Coercion [Section 15]
• committing or
• threatening to commit any act
– which is forbidden by Pakistan Penal Code or
• unlawful detaining or
• threatening to detain,
• Any property with an intention of causing
any person to enter into an agreement.
 COERCION
• The analysis of the above definition reveals that
coercion may be compelling a person to enter
into a contract under pressure or a threat.

Example: Coercion
• A beats B and compels him to sell his bike for
Rs. 20,000. Here, B’s consent has been
obtained by coercion because beating someone
is an offence under the Pakistan Penal Code.
 Coercion

I want to buy
your house in I don’t want
Rs 300,000/= to sell it
 Coercion

Now what you

say ? Oh! Okay…
its yours.
 Coercion

Now what you

say ? Oh! Okay…
its yours.

Aggrieved
Party
WITNESS 2
Dominant
WITNESS 1 Party
IS THE CONTRACT DONE
BETWEEN THEM ?
 NO
Because immovable property
contract will always be in writing
as required by law.
 Coercion

Okay Sign the

contract. Witness
1 & 2 you also Okay 
sign the contract

Aggrieved
Party (Mr. B)
WITNESS 2
Dominant
WITNESS 1 Party (Mr. A)
Witness Mr. X
 Now the contract has been
done between both the parties
but it is a void-able contract.
 CASE
IF Aggrieved Party goes to the
court.
 Court
Sir, Mr. A Buy my house
Through coercion. Do you have
any proof?
 Court
Yes Sir. Mr. X is the
witness. Call Mr. X.
 Court
Sir Mr. A buy Mr. B’s
house through Coercion Call Mr. A.
Court

Mr. A it is proved
that you did
Coercion on Mr. B.
Court

There was no contract

between you and Mr. A. &
court found you guilty. I am
sending you in Jail for 3
years.
 Court
Okay Sir.
Mr. B give Mr. A
his restitution
Back.
 UNDUE
INFLUENCE
 Undue Influence
No Mom, I can’t, I like
this house so much.
Son, please sell your
new house to your
younger brother in Rs.
20000

Aggrieved
Dominant
Party (Mr. X)
Party (Mrs. Y)
 Undue Influence
Okay Mom.

I am your mother
and you are saying
no to me 

Aggrieved
Dominant
Party (Mr. X)
Party (Mrs. Y)
 Now the contract has been done
between both the parties but it is a
void-able contract because it is due
to undue influence.
 In that scenario, the Aggrieved
party has the right to breach the
contract because his consent is
unfree.
No. Coercion
1 Definition
A contract is said to be caused by
coercion when it is obtained by:
• committing or threatening to
commit any act which is forbidden
by Pakistan Penal Code or
• unlawful detaining or threatening
to detain.
2 Consent
Consent is obtained by giving a
threat of an offence or committing
an offence.
3 Nature of pressure
It involves physical pressure.
4 Relationship
Parties to a contract may or may
not be related to each other.
Undue influence
A contract is said to be induced by undue
influence:
Where the relations between the parties
are such that
• one of them in a position to dominate
the will of the other and
• uses that position to obtain an unfair
advantage over the other.
Consent is obtained by dominating the
will.
It involves moral pressure.
Parties to a contract are related to each
other under some sort of relationship.
No. Coercion Undue influence
5. Reason The objective is to obtain an unfair
The objective is to compel a advantage
person to enter into a contract.
6. Criminal liability Criminal liability is not incurred.
Criminal liability is incurred,
therefore it is illegal.
7. On whom Undue influence may only be employed
Coercion may be employed on a on the party whose consent is desired.
person other than a party whose
consent is desired, for instance
his son.
8. By whom It can only be exercised by a party to the
It can be excercised by a stranger contract and not by a stranger.
to the contract.
9. Onus of proof The onus of proof is on the party in a
The onus of proof is on the party position
who wants to relieve himself of to dominate the will of the other party.
the consequences of coercion.
10. Restoration of benefit The party avoiding the contract may or
The aggrieved party has to may not restore benefit.
restore the benefit received.
FRAUD
 FRAUD
What Can
I Do for I need a
you Sir? Sony TV

SANYO

Mr. A
Mr. C
 FRAUD
Sir it’s a Sony’s
new Brand Okay give
SANYO. me that.

SANYO
 FRAUD
But Papa its
SANYO I told Hello Son!
you to bought Its your
SONY. new TV.

SANYO
 FRAUD
Papa, he has
done fraud with But the
you. Shopkeeper
said its Sony's
New Brand

SANYO
 CASE
Mr. A file a case against Mr. C
 Sir, Mr. C do fraud with me,
Court
he fooled me by selling
SANYO TV instead of SONY.
Call Mr. C
Court
Mr. C You had done
fraud with Mr. A. I
am sending you in
JAIL for a Month
 Court
Okay Sir.
Mr. A give Mr. C
his restitution
Back.
MISREPRESENTATION
 Misrepresentation
What Can
I Do for I need a
you Sir? Sony TV

SONY

Mr. A
Mr. C
 Misrepresentation
Here it is
anything No.
Else Sir?

SONY

Mr. A
Mr. C
 FRAUD
Let me unwrap it
papa. Hello Son!
Its your
new TV.

SONY
 FRAUD
Papa its Sanyo, I
told you to Oh! He gave
bought SONY. me SANYO by
mistake.

SANYO
 Misrepresentation
Okay Sir, No
problem I will Kindly, change it.
change it It’s a SANYO TV
not SONY

SONY

Mr. A
Mr. C
In that scenario, If the dominant
party denies to return it back the
aggrieved party will go to court.
 Conclusion
• In a void-able contract, the aggrieved party
has the right to file a case.
• If an aggrieved party is not been able to
give the restitution back, the contract
become valid.
• In Misrepresentation and Undue influence
court will not punish dominant party.
No. FRAUD MISREPRESENTATION
1 Intention There is no intention to deceive the other
There is an intention to deceive party.
the other party.
2 Belief The person making the wrong statement
The person making the wrong belief it to be true.
statement does not belief it to be
true.
3 Damages The aggrieved party cannot claim
The aggrieved party can claim damages.
damages.
4 Offence It does not amount to an offence of
It may amount to an offence of cheating. It is not a criminal act.
cheating. It is a criminal act.
5 Truth The aggrieved party cannot avoid
The aggrieved party can avoid contract if he had the means to discover
contract even if he had the means the truth with ordinary diligence.
to discover the truth with ordinary
diligence.