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WHAT IS FREE CONSENT?

Two or more person are said to consent when they

agree upon the same thing in the same sense.:-

section 13 of indian contract act.

Consent:-means that the parties should have

identity of mind.

Free consent: consent is said to be free when its

not caused by:

1. Coercion(as defined in section 15)

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CONT

2. Undue influence(as defined in section 16)

3. Fraud(as defined in section 17)4. Misrepresentation(as defined in section 18)

5. Mistake.(subject to provision of sections 20,21

&22)

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COERCION

Forcibly compelling a person to enter intocontract.

coercion if the committing or threating tocommit,any act forbidden by the indian penalcode,or the unlawful detaining,or threatening todetain,any property,to the prejudice of any personwhatever,with the intention of causing any personto enter into agreement.(sec 15 of in indiancontract act)

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UNDUE INFLUENCE

Means the unfair use of ones superior power inorder to obtain the consent of the person who is inthe weaker position.

A contract is said to be induced by undueinfulencewhere i)the relation subsisting betweenthe parties are such that one of the parties is in aposition to dominate the will of the other, andii)uses the position to obtain an unfair advantageover the other.(Sec 16(1) of Indian contract act.

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POINTS OF DIFFERENCE

COERCION UNDUE INFLUENCE

Definition Is an act based upon the use of

physical force,punishable under indian

penal code.(Sec 15)

Is a act based upon the use

of moral force,which is

not punishable.(Sec 16)

Parties Can be employed by any person evenby stranger to the contract Is employed be any of theparties to the contract

Relationship

of the parties

Parties need not have any relationship

in between themselves

Must have fuduciary

relationship

Dominance of

one party

None of parties have dominating

position to dominate the will of theother party

One of the parties has the

position to dominate thewill of the other.

Punishment Is an act punishable under indian

penal code

Not punishable under it.

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FRAUD

Intentional,deliberate or wilful misstatement of

facts.

Fraudmeans and inculdes any of the followingacts committed by a party to a contract or with his

connivance,or by his agent,with intent to deceive

another party thereto or his agent,or to induce

him to enter into the contract:

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ESSENTIALS OF FRAUD

Making a false suggestion as to a fact

Active concealment of a fact

A promise made without any intention ofperforming it

Any other act fitted to Deceive

Any such act or Omission as the law speciallyDeclared to be fraudulent

The party subjected to fraud must have suffered

some loss.

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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.

What is Misrepresentation? Representation which is false or misleading.

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ESSENTIALS OF

MISREPRESENTATION

It would be relevant if it satisfies the following

requirements:

It must be false, but the person who made ithonestly believes it to be true.

It must relate to the material facts of the

contracts.

it must be made before the conclusion of the

contract.

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DIFF.BETWEEN MISREPRESENTATION AND

FRAUD.

MISREPRESENTATION FRAUD

No intention to deceive the other party Intention to deceive

Not an act punishable by Indian penal

code. Hence it is not

an?

Can become a criminal act punishable

under Indian penal code.

Its is an innocent wrong. Its is intentional or wilful wrong.

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MISTAKE

An erroneous belief concerning something.

Or incorrect belief which leads one party to

misunderstand the other.Types of Mistakes:

1. Mistake of facts

2. Mistake of lawMistake of facts are again classified into two:

1. Bilateral Mistake

2. Unilateral mistake

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Mistake

Mistake of Fact

(Sec 20)

Mistake of Law

(Sec.21)

Bilateral Mistake Unilateral Mistake Law of the land Foreign Law

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CONT..

BILATERAL MISTAKE

A mistake in which both the parties to an

aggrement are confused about the facts which areessential to the aggrement.

UNILATERAL MISTAKE

A mistake in which only one of the parties to anaggrement is confused about the facts which are

essential to the aggrement.

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MISTAKE OF LAW

Mistake of law is of two types:

Mistake of law of the land Mistake of foreign law.

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