Module 5: Free Consent Flashcards
Chikam Amiraju v Chikam Seshamma
The husband threatened suicide if his wife and son did not execute a release deed in favor of his brother. The contract was deemed void since consent had been obtained by coercion as suicide is a criminal offence.
Rangnayakamma v Alwar Seti
The dead husband’s family did not allow the widow to cremate her husband’s remains without adopting a child. She applied for adoption and later rescinded and was charged with breach of contract but she successfully used the defense of coercion.
Ismail v Amir Bibi
Woman claimed undue influence. However it was decided that she was not a pardanashin woman as she stood as witness, put tenants and collected rent in respect of her house.
Askari Mirza v Bibi Jai Kishori
A person signed a contract in fear of the threat of legal charges being filed. It was decided that since filing legal charges is not a criminal offense under IPC, there was no coercion. If the threat is of fake charges being filed, then there is coercion.
Ranee Annapurni Nachiar v Swaminatha Chettiar
Poor widow needed money to establish her right to maintenance. A moneylender gave her a loan at 100% interest. This was undue influence.
Wajid Khan v Raja Ewaz Ali Khan
An old illiterate woman executed a contract that gave her confidential managing agent important pecuniary benefit without any consideration under the guise of a trust. Undue influence vitiates the contract.
Derry v Peek
Company issued a prospectus that said that they had permission to use steam trams instead of horse powered trams. They believed genuinely that they will get the permission to operate the trams because it was a mere formality. Fraudulent misrepresentation vitiated the contract.
3 part test for fraudulent misrepresentation established by Derry v Peek
- Knows the statement to be false.
- Does not believe in the statement.
- Is reckless as to its truth.
Peek v Gurney
Company issued prospectus with misleading information. Appellant had purchased the shares from an allottee, not the company. It was held that the prospectus was for original allottees of shares only, therefore the appellant was not entitled to compensation.
Phillips v Brooks
Man entered Philips jewelry shop and purchased jewelry on the pretext of being Sir George Bullough living at a particular address. Phillips checked and there was someone living by that name at that address. The man took a ring and left and pawned it off to Brooks. Phillips sued Brooks. Mistake to identity does not exist when parties are contracting face to face.
Cundy v Lindsey
Lindsey sued Cundy, an innocent 3rd party because it had been defrauded in their correspondence by a man pretending to be to be a reputed company. The man bought 250 handkerchiefs from Lindsey and sold them to Cundy. Cundy found guilty of conversion since title of the goods never belonged with “Blenkiron.”
Smith v Chadwick
A company prospectus contained a statement that a certain important person was on the board of directors. The statement was false. The plaintiff admitted in questioning that his judgment had not been influenced by this statement. It was held that the plaintiff could not avoid the contract on the ground of misrepresentation as he had not been influenced by the misstatement.
Raffles v Wichelhaus/ The “Peerless” Case
Cotton merchants were talking about delivery by the ship “Peerless.” However, there were 2 peerless ships and no mutual mistake. No meeting of minds. The case established that where there is latent ambiguity as to an essential element of the contract, the Court will attempt to find a reasonable interpretation from the context of the agreement before it will void it.
