Basic Concept for Free Consent

1. FREE CONSENT
MICHEAL SOLOMON L

2. CONSENT – Meaning
 Consent of the parties means that there is perfect identity of
mind of both the parties .
 That is , there is no MISUNDERSTANDING between the
parities regarding the subject matter of the contract.
 It means the consent which is obtained by the FREE will of
the parties and neither party was FORCED or INDUCED to
give his consent.

3. CONSENT – Definition
 According to Sec 13 of the Indian Contract Act Consent is defined as “ Two or more persons are
said to consent when they AGREE upon the SAME THING in the SAME SENSE.
 Sec 14 of the Indian Contract Act defines as “Consent is said to be free when it is not caused by :
 Coercion
 Undue influence
 Fraud
 Mis- representation
 Mistake

4. COERCION – Meaning & Definition
 COERCION means forcibly compelling a person to enter into a
contract.
 According to Sec 15 of the Indian Contract Act, Coercion is defined
as “Coercion is the committing or threatening to commit any act
forbidden by the Indian Penal Code ( IPC) or 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”

5. Essentials for a valid Coercion
 The coercion must be the committing of any act forbidden by the IPC.
 It must be the threatening to commit any act forbidden by the IPC.
 It must be the unlawful detaining or threatening to detain any property.
 It must be done with the intention of causing the other party to enter into
contract.
 IPC may or may not be in force where the coercion is committed.
 The act of coercion may be initiated by any person.
 Coercion may be by way of an attempt to commit suicide.
 Coercion may not be by way of threat to file a suit.

6. UNDUE INFLUENCE – Meaning & Definition
 It means the UNFAIR use of one’s superior power in order to
obtain the consent of a person who is in a weaker position.
 Sec 16(1) of the Indian Contract Act defines undue influence as
follows “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”

7. Three essential parts of Undue Influence
1. one party must be in a position to dominate the will of
the other.
2. Dominant party must use his superior position to
obtain an undue advantage over the weaker party.
3. The dominant party must have obtained an unfair
advantage over the weaker party.

8. Relationship where undue influence is presumed
 Advocate and Client
 Doctor and patient
 Religious guru and Disciple
 Parent and Child
 Guardian and Ward
 Trustee and Beneficiary
 Fiance and fiancée
 Master and Servant
 Income Tax officers and Assessee

9. Difference – Coercion & Undue Influence

10. FRAUD
 Fraud means an intentional , deliberate or wilful
misstatement of facts which are material for the formation of
a contract.
 According to Sec 17 of the Indian Contract Act fraud defines as
“ Fraud means and includes any of the following acts
committed by a person 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 a contract.

11. Acts which constitute fraud
 False statements of facts
 Active concealment of fact
 Promise made without any intention of performing it
 Any act fitted to deceive
 Such act or omission as the law specially declares to be fraudulent.

12. MERE SILENCE IS NOT FRAUD
Exceptions.
Where there is a duty of the person
keeping silence to speak
Where silence is equivalent to speech
Half truth

13. MISREPRESENTATION
Misrepresentation may be defined as an
innocent misstatement of facts which are
material for the contract.
It’s a false representation which is made
innocently, without any intention to deceive the
other party.

14. Essentials and Legal Rules for Misrepresentation
 The misrepresentation must be of material facts.
 The misrepresentation must be false but the person making it honestly
believes it be true
 The misrepresentation must induce the other party to enter into a contract
 The false statement which amounts to misrepresentation must have been
addressed by the person making it to the party who is misled by it
 It must be made without any intention to cheat the other party
 It need not be made directly to the plaintiff.

15. Fraud VS Misrepresentation

16. MISTAKE

17. MISTAKE
 Mistake may be defined as incorrect belief about something.
 It is infact an incorrect belief which leads one party to misunderstand the other,
 Types of mistake
 Mistake of FACT
 Mistake of law

18. Mistake of facts
The mistake of facts can be classified
into two
Bilateral mistake
Unilateral mistake

19. Bilateral mistake
Bilateral mistake may be defined as a mistake
in which both the parties to an agreement
are confused about the facts which are
essential to the agreement .
It is also called COMMON MISTAKE or
MUTUAL MISTAKE

20. UNILATERAL MISTAKE
 The term Unilateral Mistake may be defined as a mistake in which only ONE of the
parties to an agreement is confused about the facts which are essential to the
agreement.

21. Mistake of LAW
 It may be classified into two types
 Mistake of Indian Law
 Mistake of Foreign Law
 IGNORANCE OF LAW IS NO EXCUSE

22. THANK YOU