Indian Contract Act, 1872

1. FREE CONSENT
COERCION
BUSINESS LAW
S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

2. ESSENTIAL ELEMENTS OF A VALID
CONTRACT
Essential
Elements
of
a
Valid
Contract
Offer and Acceptance
Legal Relationship
Lawful Consideration
Capacity of the Parties
Free Consent
Legality of the object
Legal Formalities
Certainty
Possibility of performance
Not expressly declared void
S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

3. FREE CONSENT
Term ‘consent’ means agreement between
the parties upon the same thing in the same
sense, ie. Consensus ad idem.
Absence of consent may arise from number
of causes, viz.,
i. Nature of the contract
ii. Identity of the parties
iii. Subject matter of the agreement
If the parties enter into an agreement
concerning particular persons and things,
but each has different persons or things in
his mind, there is no agreement and no
contract comes into existence between
them. S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

4. FREE CONSENT
Free consent is the consent which has been
obtained by the free will of the parties out of
their own accord.
According to Sec.14 of the Indian Contract Act,
1872, consent is said to be free when it is not
caused by :
1. Coercion (Sec.15)
2. Undue influence (Sec.16)
3. Fraud (Sec.17)
4. Misrespresentation (Sec.
18)
5. Mistake (Secs.20,21&22)
S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

5. 1. COERCION
Sec.15 of the Indian Contract Act, 1872,
defines coercion as the committing or
threatening to commit any act forbidden by the
Indian Penal Code, OR, an unlawful detaining
or threatening to detain, any property to the
prejudice (hurtful) of any person to enter into
an agreement.
For Eg.
•Consent obtained at the point of pistol or
intimidation.
•A threat to commit suicide with the intention
of causing a person to enter into an
agreement.
•Threats of imprisonment. S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

6. ESSENTIALS OF COERCION
(EVIDENCES)
1) There should be a clear utterance of threat.
2) The threat should be to commit an act forbidden by the
Indian Penal Code.
3) It must be committed with the intention of causing the
aggrieved party to enter into an agreement.
4) Unlawful detaining or threatening to detain any property.
5) Coercion may be employed by a party to the contract or by
his agent.
6) Coercion may be used against a party to the contract or
against any other third person (who has interest in the
agreement).
S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

7. DURESS
Coercion in India is known as duress in England.
S.No. Coercion Duress
1. Coercion may be directed
even against a third party.
Duress must be aimed against
the life of the contracting
party, his wife or children.
2. Coercions may proceed from
any person.
Duress must proceed from the
party to the contract.
3. For eg., It may be by way of
threat to commit suicide.
For eg., duress must be such
as to cause immediate violence
(bodily harm)
S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

8. BURDEN OF PROOF
The burden of proof of an act of coercion vests with the
aggrieved party.
He/she should prove that his consent in the contract was
obtained by force.
EFFECT OF COERCION
Sec. 16 provides that an agreement for which consent is
obtained by coercion is voidable at the option of the party
whose consent is so obtained.
S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

9. S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM