{"id":3935,"date":"2020-03-13T13:48:18","date_gmt":"2020-03-13T13:48:18","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3935"},"modified":"2020-03-13T13:48:18","modified_gmt":"2020-03-13T13:48:18","slug":"free-consent-in-contract","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/free-consent-in-contract\/","title":{"rendered":"FREE CONSENT IN CONTRACT"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/free-consent-in-contract\/#FREE_CONSENT_IN_CONTRACT\" title=\"FREE CONSENT IN CONTRACT\">FREE CONSENT IN CONTRACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/free-consent-in-contract\/#CONCLUSION\" title=\"CONCLUSION\">CONCLUSION<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"FREE_CONSENT_IN_CONTRACT\"><\/span><strong>FREE CONSENT IN CONTRACT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For\na contract to be valid, it is necessary that the parties provide free consent\nto be terms. If the contract were not with free consent, the contract would be\nvoidable by the other party whose consent was not taken or was not free.\nConsent is said to be free only when it is not entered by means of:<\/p>\n\n\n\n<ul><li>Coercion<\/li><li>Undue\nInfluence<\/li><li>Fraud<\/li><li>Misrepresentation\nand<\/li><li>Mistake<\/li><\/ul>\n\n\n\n<p><strong>ACCORDING TO SECTION 13 OF<a href=\"https:\/\/commerceiets.com\/indian-contract-act-1872\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" INDIAN CONTRACT ACT 1872 (opens in a new tab)\"> INDIAN CONTRACT ACT 1872<\/a><\/strong><\/p>\n\n\n\n<p>\u201cFree Consent is when two or more persons agree upon the same thing and\nin the same sense\u201d. <\/p>\n\n\n\n<p>So the two people must agree to something in the same sense as well. <\/p>\n\n\n\n<p><strong>EXAMPLE: <\/strong>A agrees to sell his car to B. A owns three cars and wants to sell the Maruti. B thinks he is buying his Honda. Here A and B have not agreed upon the same thing in the same sense. Hence there is no consent and subsequently no contract.<\/p>\n\n\n\n<p class=\"has-background has-text-align-center has-larger-font-size has-green-background-color\"><strong>COERCION (SECTION 15)<\/strong><\/p>\n\n\n\n<p>Coercion means using force to compel a person to enter into a contract. So force or threats are used to obtain the consent of the party under <a href=\"https:\/\/commerceiets.com\/coercion\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"coercion (opens in a new tab)\">coercion<\/a>, i.e it is not free consent. <\/p>\n\n\n\n<p><strong>ACCORDING TO SECTION 15 OF INDIAN CONTRACT ACT, 1872<\/strong><\/p>\n\n\n\n<p>\u201cCoercion is<\/p>\n\n\n\n<ul><li>committing or threatening to commit any act forbidden by the law in the&nbsp;IPC<\/li><li>unlawfully detaining or threatening to detain any property with the\nintention of causing any person to enter into a contract.\u201d<\/li><\/ul>\n\n\n\n<p><strong>EXAMPLE: <\/strong>A threatens to hurt B if he does not sell his house to A for 5 lakh rupees. Here even if B sells the house to A, it will not be a valid contract since B\u2019s consent was obtained by coercion.<\/p>\n\n\n\n<p>Coercion makes\nthe contract voidable. This means the contract is voidable at the option of the\nparty whose consent was not free. So the aggravated party will decide whether\nto perform the contract or to void the contract. <\/p>\n\n\n\n<p class=\"has-background has-text-align-center has-larger-font-size has-green-background-color\"><strong>UNDUE INFLUENCE (SECTION 16)<\/strong><\/p>\n\n\n\n<p><strong>ACCORDING TO SECTION 16 OF INDIAN CONTRACT ACT 1872<\/strong><\/p>\n\n\n\n<p>\u201cWhen the relations between the two parties are such that one party is in a position to dominate the other party, and uses such <a href=\"https:\/\/commerceiets.com\/undue-influence\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"influence (opens in a new tab)\">influence<\/a> to obtain an unfair advantage of the other party it will be undue influence.\u201d<\/p>\n\n\n\n<p>The section\nalso further describes how the person can abuse his&nbsp;authority&nbsp;in the following two ways,<\/p>\n\n\n\n<ul><li>When a person holds real or even apparent authority over the other\nperson. Or if he is in a fiduciary&nbsp;relationship&nbsp;with\nthe other person.<\/li><li>He makes a contract with a person whose mental capacity is affected by\nage, illness or distress. The unsoundness of mind can be temporary or permanent.<\/li><\/ul>\n\n\n\n<p><strong>EXAMPLE: <\/strong>A sold his gold watch for only Rs 500\/- to his teacher B after his teacher promised him good grades. Here the consent of A is not freely given; he was under the influence of his teacher.<\/p>\n\n\n\n<p>If consent\nis not free due to undue influence, the&nbsp;contract&nbsp;becomes\nvoidable at the option of the aggravated party. And the burden of proof will be\non the dominant party to prove the absence of influence.<\/p>\n\n\n\n<p class=\"has-background has-text-align-center has-larger-font-size has-green-background-color\"><strong>FRAUD (SECTION 17)<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/commerceiets.com\/fraud\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Fraud\u00a0 (opens in a new tab)\">Fraud\u00a0<\/a>means\u00a0deceit by one of the parties, i.e. when one of the parties deliberately makes false statements. So the misrepresentation is done with full knowledge that it is not true, or recklessly without checking for the trueness, this is said to be fraudulent. It absolutely impairs free consent.<\/p>\n\n\n\n<p><strong>ACCORDING TO SECTION 17 OF INDIAN CONTRACT ACT, 1872<\/strong><\/p>\n\n\n\n<p>\u201cA fraud is when a party convinces another to enter into an agreement\nby making&nbsp;statements&nbsp;that are<\/p>\n\n\n\n<ul><li>Suggesting a fact that is not true,\nand he does not believe it to be true<\/li><li>The active concealment of facts<\/li><li>A promise made without any\nintention of performing it<\/li><li>Any other such act fitted to deceive\u201d<\/li><\/ul>\n\n\n\n<p><strong>EXAMPLE: <\/strong>A bought a horse from B. B claims the horse can be used on the farm. A turn out the horse is lame and A cannot use him on his farm. Here B knowingly deceived A and this will amount to fraud.<\/p>\n\n\n\n<p>One factor to consider is that the aggravated party should suffer from\nsome actual&nbsp;<a href=\"https:\/\/www.toppr.com\/guides\/maths\/compairing-quantities\/profit-and-loss\/\" target=\"_blank\" rel=\"noopener\">loss<\/a>&nbsp;due to the fraud. <\/p>\n\n\n\n<p class=\"has-background has-text-align-center has-larger-font-size has-green-background-color\"><strong>MISREPRESENTATION (SECTION 18)<\/strong><\/p>\n\n\n\n<p>Misrepresentation is also when a party makes a representation that is false, inaccurate, incorrect, etc. The difference here is the <a href=\"https:\/\/commerceiets.com\/misrepresentation\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"misrepresentation  (opens in a new tab)\">misrepresentation <\/a>is innocent, i.e. not intentional. The party making the statement believes it to be true. Misrepresentation can be of three types:<\/p>\n\n\n\n<ul><li>A person makes a positive assertion believing it to be true<\/li><li>Any breach of duty gives the person committing it an advantage by\nmisleading another. But the breach of duty is without any intent to deceive<\/li><li>When one party causes the other party to make a mistake as to the\nsubject&nbsp;matter&nbsp;of the contract. But this is done innocently\nand not intentionally.<\/li><\/ul>\n\n\n\n<p class=\"has-background has-text-align-center has-larger-font-size has-green-background-color\"><strong>MISTAKE (SECTIONS 20-21)<\/strong><\/p>\n\n\n\n<p>Mistake\nmay be characterized as a wrong conviction from the parties to the contract\nconcerning something relating to the contract. <\/p>\n\n\n\n<p>Consent cannot be free when an agreement is entered into under a mistake by either of the parties. When both the parties are under a genuine<a href=\"https:\/\/commerceiets.com\/mistake-in-contract-law\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" mistake (opens in a new tab)\"> mistake<\/a>, the particular contract is considered void and can, therefore, be avoided.\u00a0 <\/p>\n\n\n\n<p>On the other hand, if any mistake of fact is made by either of the parties and not by both, the defaulting party is prohibited from denying the formation of an agreement on the grounds that he\/she was mistaken with respect to the subject matter.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"CONCLUSION\"><\/span><strong>CONCLUSION<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Free Consent is absolutely essential to make an agreement a valid contract. Consent of the parties to the contract must be free and voluntarily. Consent to the contract has to be given without any kind of pressure or delusions. It is important that the consent given by the parties is free as this can affect the validity of the contract. If the consent to the agreement was obtained or induced by coercion, undue influence, fraud, misrepresentation or mistake, then it has the potential to make the agreement void.<\/p>\n\n\n\n<p><strong>JOIN THE CHANNEL ON TELEGRAM<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/t.me\/commerceiets\" target=\"_blank\">https:\/\/t.me\/commerceiets<\/a><\/p>\n\n\n\n<p><strong>CONNECT ON LINKEDIN<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FREE CONSENT IN CONTRACT For a contract to be valid, it is necessary that the parties provide free consent to be terms. If the contract were not with free consent, the contract would be voidable by the other party whose consent was not taken or was not free. Consent is said to be free only&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/free-consent-in-contract\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;FREE CONSENT IN CONTRACT&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3938,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3935"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3935"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3935\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3938"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}