Free consent is necessary for a valid contract. Consent must be free from coercion, undue influence, fraud, misrepresentation, or mistake. Coercion involves threatening unlawful acts. Undue influence involves improperly using power over another's mind. Fraud involves intentional deception, while misrepresentation can be unintentional. A bilateral mistake of a fundamental fact by both parties makes a contract void, while a unilateral mistake only makes a contract voidable. Consent must involve agreement on the same terms by both parties with free and valid consent for a contract to be enforceable.

1. FREE CONSENT
Submitted By
Name:- Mayur V Behara
Class:- MLW
Sem:- III
Roll no:-01

2.  According to Section 13 two or more persons are said to
consent when they agree upon the same thing in the same
sense.
 This means that there should be perfect identity of mind
(consensus ad idem) regarding the subject matter of the
contract.

3.  To make a contract valid not only consent is necessary but
the consent should also be free.
 Section 13 says the consent is said to be free when it is not
caused by any of the following :
(a) Coercion - sec 15
(b) Undue influence - sec 16
(c) Fraud
(d) Misrepresentation - sec 17,18
(e) Mistake –sec 20,21

4. Coercion
(Sec-15)
Coercion is committing
or threatening to commit
any act forbidden by the
Indian Penal Code, or
the unlawful detaining or
threatening to detain any
property to the prejudice
of any person,
whatsoever with the
intention of causing any
person to enter into an
agreement .

5. UNDUE
INFLUENCE
(Sec-16)
 Undue influence is the
improper use of any power
possessed over the mind of the
contracting party. According to
section 16 a contract is said to
be affected by undue influence
when:
 The relations subsisting
between the parties are such
that one of the parties is in a
position to dominate the will
of other.
 Uses that position to obtain an
unfair advantage over the
other.
Following are the parties
that can be affected by
undue influence
 Doctor and patient
 Lawyer and client
 Guardian and ward
 Trustee and beneficiary
 Teacher and student
By operation you just execute a deed
of giving your Whole property to me

6. Fraud
(Sec-17)
Misrepresentation of
facts may be
intentional or
innocent. Intentional
misrepresentation has
been termed as Fraud
and innocent
misrepresentation has
been termed simply as
‘misrepresentation’ in
the contract act.
Examples of fraud:-
 Manoj was induced to buy shares in
a company on account of a false
statement made by a stranger. It was
held that he could not get out of the
bargains because false statement was
not made by the company or its
agent.
 Manoj says to deepika his coat is
made of pure wool ,though he knows
that it is untrue .Deepika purchases
the coat believing Manoj’s statement
to be true ,It is a fraud by Manoj and
therefore contract is voidable at
deepika’s option.

7. Misrepresentation
(Sec-17-18)
Misrepresentation is a
false representation
made innocently without
any intention of
deceiving the other party
.It may include two
things:
(a) wrong statement of a
material fact not known
to be false
(b) Non-disclosure of
facts where there is a
legal duty to disclose
without intention to
deceive
Difference between fraud and
misrepresentation:-
Misrepresentation Fraud
There is no intention
to deceive or to gain
any undue advantage
In fraud the false
statement is made
deliberately with a
clear intention of
deceiving the other
party
It makes the other
contract only
voidable at the
option of the party
whose consent has
been so caused
In fraud the injured
party besides
avoiding the contract
may also claim the
damages.

8. Mistake
(Sec-20-21)
Mistake are of two
type
A. Mistake of law
B. Mistake of fact
Mistake of law
Mistake of law is
further divided into
three categories
A. (a) mistake of
Indian law
B. (b) mistake of
foreign law
(b) mistake as to private rights of the
parties – treated as mistake of fact .
Here , the agreement will be void in
case of bilateral mistake only.
Mistake of fact:-
A. Bilateral mistake
B. Unilateral mistake are two types of
mistake of fact

9.  Section 20 states that were both the parties to an agreement are
under a mistake as to a matter of fact, essential to the
agreement shall be void. The mistake shall be termed as
bilateral mistake of fact only when both of the following
conditions are satisfied
 (a) it should be committed by both the parties
 (b) it should relate to a matter of fact essential to the
agreement.
 E.g.-A agrees to buy certain horse from B .It turns out that the
horse was dead at the time of the agreement ,though neither
party was aware about this fact. The agreement is void.

10.  One party to a contract is under a mistake of fact, the
contract is voidable .unilateral mistake do not affect the
validity of contract unless they concern some fundamental
 Example: A agreed to buy certain wheat from B believing
that they were old.Infact wheat offered were new. It was held
that A could not avoid the contract on the ground that he had
a mistaken impression as to the oldness of wheat.

11. THANK YOU