Free Consent : Coercion Under Indian Contract Act

‘CONSENT’ DEFINED 

Two or more persons are said to consent when they agree upon the same thing in the same sense. 

FREE CONSENT : Consent is said to be free when it is not caused by:

1. COERCION (SECTION 15)

2. UNDUE INFLUENCE (SECTION 16)

3. FRAUD (SECTION 17)

4. MISREPRESENTATION (SECTION 18)

5. MISTAKE (SUBJECT TO PROVISION OF SECTION 20, 21 & 22)

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FREE CONSENT SECTION (14)

When there is no consent, there is no contract. It is one of essentials of a valid contract. Parties to the contract should enter into the contract with free consent. Free consent is mentioned in sec-14. If the consent of one of parties is not free, it is no contract. If one of the above stated factors causes consent, the contract is not a valid contract. If consent in an agreement is caused by

(a) coercion or 

(b)undue influence or 

(c)fraud or 

(d)misrepresentation,

The agreement is a contract voidable at the option of party whose consent was so caused. If the consent is caused by mistake, the contract is void.

COERCION

 It is defined by SECTION 15 of Indian contract act 1872. Coercion is the committing or threatens to commit any act forbidden by IPC . Unlawful detaining or threatening to detain any property to the prejudice of any person with the intention to cause a person to make an agreement is known as coercion. In other words, when a person is compelled to enter in a contract by use of force by other party under a threat is known as coercion. Coercion includes fear, physical compulsion etc.

FOR EXAMPLE, A threatens B to shoot him, if B does not release A from debt owed to him. B releases A from the debt under the threat, This is coercion. 

COERCION IS SAID TO BE THERE WHERE THE CONSENT OF A PERSON HAS BEEN CAUSED EITHER BY:

  1. Committing or threatening to commit any act forbidden by IPC.
  2. Unlawful detaining or threatening to detain any property.

such an act shall be to the prejudice of any person whatsoever.

ACT FORBIDDEN BY I.P.C. LAW :

If a person commits or threaten to commit any, act forbidden by IPC to obtain the consent of other party for making a contract. The consent in such a case is not a free consent. The consent is caused by coercion.

FOR EXAMPLE, A threatens to shoot B, if B does not agree to sell his property to A at a stated price. B's consent is caused by coercion. 

In CHIKKAN AMIRRAJU VS CHIKKAM SHESHMA, A, Hindu husband by giving a threat of suicide compelled his wife and son to exercise a release deed in favour of his brother in respect of certain properties owned by the wife and son. It was held that threat to commit suicide amounts to coercion within the meaning of SECTION 15 under the act and the deed was held to the voidable.

UNLAWFUL DETAINING OF PROPERTY:

Coercion can also be caused by unlawful detention or threatening to detain any property to prejudice of any person with the intention to force him to enter into the contract.

FOR EXAMPLE

(i) "A" refuses to give keys of locks to new bank manager unless the new manager gives him the promotion.

(ii) "A" unlawfully detains "B" who is son "C" in order to force "B" to enter into an agreement. The consent in such a case is not free consent. Therefore, the consent is said to obtain by coercion.

THREAT TO STRIKE IS NOT COERCION

In WORKMEN OF APPIN TEA ESTATE V INDUSTRIAL TRIBUNAL, the demand of worker for bonus was accepted after a threat of strike. It was held that threat to strike do not amount to coercion.

SECTION 19 : EFFECT OF COERCION

 When the consent in an agreement is caused by coercion, the agreement is a contract voidable at the option of party whose consent was so caused.

According to SECTION 72, a person to whom money has been paid or anything delivered under coercion must repay or return it.

DISTINGUISH COERCION AND UNDUE INFLUENCE

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