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

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

COERCION Forcibly compelling a person to enter into contract.´(sec 15 of in indian contract act) .with the intention of causing any person to enter into agreement.or threatening to detain.any act forbidden by the indian penal code.to the prejudice of any person whatever. ³coercion if the committing or threating to commit.any property.or the unlawful detaining.

and ii)uses the position to obtain an unfair advantage over the other.(Sec 16(1) of Indian contract act. .UNDUE INFLUENCE Means the unfair use of one¶s 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 ³undue infulence´where 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.

(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.which is penal code.punishable under indian of moral force.POINTS OF DIFFERENCE COERCION Definition UNDUE INFLUENCE Is an act based upon the use of Is a act based upon the use physical force. 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 .(Sec 15) not punishable. Not punishable under it.

´ ³Fraud´means and inculdes any of the following acts committed by a party to a contract or with his connivance.deliberate or wilful misstatement of facts.FRAUD Intentional.or by his agent.or to induce him to enter into the contract: ´ .with intent to deceive another party thereto or his agent.

´ .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.

´ What is Misrepresentation? ´ Representation which is false or misleading. ´ .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.

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

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. MISREPRESENTATION No intention to deceive the other party Not an act punishable by Indian penal code.DIFF.BETWEEN MISREPRESENTATION AND FRAUD.

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

Mistake Mistake of Fact (Sec 20) Mistake of Law (Sec.21) Bilateral Mistake Unilateral Mistake Law of the land Foreign Law .

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. .. BILATERAL MISTAKE ´ A mistake in which both the parties to an aggrement are confused about the facts which are essential to the aggrement.CONT.

´ .MISTAKE OF LAW Mistake of law is of two types: ´ Mistake of law of the land ´ Mistake of foreign law.