Ch 4

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FREE CONSENT [Sections 10; 13–22]:

FREE CONSENT [Sections 10; 13–22] Section 13 It is essential to the creation of a contract that both parties agree to the same thing in the same sense. When two or more persons agree upon the same thing in the same sense, they are said to consent.

Free Consent Defined (Section 14):

Free Consent Defined (Section 14) Consent is said to be free when it is not caused by— (a) Coercion. ( b) Undue influence. ( c) Fraud. ( d) Misrepresentation. ( e) Mistake

COERCION (Sections 15, 19 and 72):

COERCION (Sections 15, 19 and 72) Coercion is the committing, or threatening to commit any act forbidden by the Indian Penal Code or ( ii) 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.


EXAMPLE A threatens to kill B if he doesn’t transfer his house in A’s favour for a very low price. The agreement is voidable for being the result of coercion.

UNDUE INFLUENCE (Sec 16 and 19-A):

UNDUE INFLUENCE (Sec 16 and 19-A) 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.

FRAUD (Sections 17 and 18):

FRAUD (Sections 17 and 18) ‘Fraud’ means and includes any of the following acts committed by a party to a contract with intent to deceive another party thereto or his agent 1. the suggestion, as a fact, of that which is not true by one who does not believe it to be true; 2. the active concealment of a fact by one having knowledge or belief of the fact; 3. a promise made without any intention of performing it; 4. any other act fitted to deceive; 5. any such act or omission as the law specially declares to be fraudulent.


EXAMPLE H sold to W certain pigs. The pigs were suffering from some fever and H knew it. The pigs were sold “with all faults.” H did not disclose the fever to W.


MISREPRESENTATION (Sec 18 and 19) Misrepresentation is a false statement which the person making it honestly believes to be true or which he does not know to be false. It also includes non-disclosure of a material fact or facts without any intention to deceive the other parties.

Section 18 of the Contract Act:

Section 18 of the Contract Act The positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true. Any breach of duty which, without an intent to deceive, gives an advantage to the person committing it, by misleading another to his prejudice or to the prejudice of anyone claiming under him. Causing, however innocently, a party to an agreement to make a mistake as to the substance of thing which is the subject of the agreement.

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