Sections under Free consent

Question 1

Section 13

Answer 1

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

Meeting of Minds

Question 2

Section 14

Answer 2

“FREE” CONSENT
(CUFMM)

Consent is said to be free when it is not caused by–
(1) coercion, as defined in section 15, or
(2) undue influence, as defined in section 16, or
(3) fraud, as defined in section 17, or
(4) misrepresentation, as defined in section 18, or
(5) mistake, subject to the provisions of sections 20, 21 and 22.

Consent is said to be so caused when it would not have been given but for the existence of such coercion, undue influence, fraud, misrepresentation or mistake.

Question 3

Section 2 (i)

Answer 3

VOIDABLE
If there is no free consent of either party to the contract.
Enforced or rescinded the opinion of the party whose consent was not free

Question 4

Section 2 (j)

Answer 4

VOID
> Subsequent illegality or impossibility of any act which is to be performed in the future.
> NOT enforceable

Question 5

Section 15

Answer 5

“Coercion”

> Committing, or threatening to commit, any act forbidden by the Indian Penal Code (45 of 1860)

> 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.

Astley v. reynolds

Question 6

Section 16

Answer 6

UNDUE INFLUENCE
A contract is said to be induced by ‘undue influence’ where

Relation is such
> One party in position to dominate will of the other
> Uses the position to obtain unfair advantage over the other

Moody v Cox

Question 7

Section 17

Answer 7

‘Fraud’ defined

‘Fraud’ means and includes any of the following acts committed by a party 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 the contract:—

(1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be true;
(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;
(4) any other act fitted to deceive;
(5) any such act or omission as the law specially declares to be fraudulent.

Explanation.—Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstances of the case are such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, is, in itself, equivalent to speech.

1. Derry v. Peek
2. Ningawwa v. Byrappa Shidappa Hireknrabar
3. Shri krishnan v kurukshetra University
4. P. Sarojam v. LIC
5. With v. O’Flanagan
6. R.C. Thakkar v. Bombay Housing Board
7. DDA v. Skipper Construction Co (P) Ltd.

Question 8

Section 18

Answer 8

Misrepresentation” defined.

(1) the positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true;

(2) any breach of duty which, without an intent to deceive, gains an advantage of the person committing it, or any one claiming under him, by misleading another to his prejudice, or to the prejudice of any one claiming under him;

(3) causing, however innocently, a party to an agreement, to make a mistake as to the substance of the thing which is the subject of the agreement.