Chapter 4

Question 1

Consent:

Answer 1

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

Question 2

Free consent:

Answer 2

The consent is said to be free when it is not caused by: Coercion or Undue influence or Fraud or
Misrepresentation or Mistake.

Question 3

Coercion

Answer 3

Coercion is Committing or threatening to commit any act which is forbidden by Pakistan Penal Code; or Unlawful detaining
or threatening to detain any property with an intention of causing any person to enter into an agreement.

Question 4

Undue influence:

Answer 4

A contract is said to be induced by undue influence where the relations subsisting between the parties
are such that,
1) one of the parties is in a position to dominate the will of the other; and 2) uses that position to obtain
unfair advantage over the other.

Question 5

Fraud

Answer 5

“Fraud” means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his
agents, with intent to deceive another party thereto his agent, or to induce him to enter into the contract;
1) the suggestion as a fact, of that which is not true, by one who does not believe it to be true; (false assertion)
2) the active concealment of a fact by one having knowledge or belief of the fact;
3) a promise made without any intention of performing it (empty promise);
4) any other act fitted to deceive;
5) any such act or omission as the law specially declares to be fraudulent.

Question 6

Misrepresentation

Answer 6

Misrepresentation means and includes-
1) Unwarranted statement, When a person makes a positive statement that a fact is true when his information does
not warrant it to be so, though he believes it to be true.
2) Breach of duty, Any breach of duty which, without an intent to deceive, gains an advantage to the person committing it,
or anyone claiming under him; by misleading another to his prejudice, or to the prejudice of any one claiming under him;
3) Inducing mistake about subject matter (Innocent misrepresentation), A party to an agreement induces (however
innocently) the other party to make a mistake as to the nature or quality of the subject of the agreement.

Question 7

Mistake

Answer 7

Where both the parties to an agreement are under a mistake as to matters of facts essential of the agreement, the agreement is void.

Question 8

Wagering agreement:

Answer 8

Agreement between two persons (a bet) under which money or other thing is payable, by one
person to another on happening or non-happening of a future uncertain event.