Flaws in Consent
Consent is a fundamental
element in contract law, ensuring that all parties willingly agree to the terms
of an agreement. As per Section 13 of the Indian Contract Act, 1872,
consent is defined as:
“Two
or more persons are said to consent when they agree upon the same thing in the
same sense.”
However,
for consent to be legally valid, it must also be free, as stipulated
under Section 14 of the Act. Consent is not considered free if it is
influenced by one of the following flaws:
1. Coercion
Defined
under Section 15, coercion occurs when a person is compelled to enter
into a contract through threats or unlawful means.
Features of Coercion:
- It involves threats
to commit an act forbidden by the Indian Penal Code (IPC).
- It may include
unlawful detention or threats to property.
- The intent is to
force the other party to agree.
Example:
A
threatens to harm B unless B signs a contract to sell his house.
Legal Consequences:
Contracts
formed under coercion are voidable at the option of the aggrieved party
(Section 19).
2. Undue Influence
As
per Section 16, undue influence occurs when one party takes advantage of
their dominant position over another to influence their decisions.
Features of Undue Influence:
- A relationship of
trust or authority exists between the parties.
- The dominant party
exploits their influence to obtain an unfair advantage.
Example:
A
doctor persuades a patient to sell property at a lower price, exploiting their
position of trust.
Legal Consequences:
Contracts
formed under undue influence are voidable at the discretion of the
weaker party.
3. Fraud
Fraud
is defined under Section 17 as deliberate deception with the intent to
induce another party to enter into a contract.
Features of Fraud:
- It involves false
statements made knowingly or recklessly.
- It includes
suppression of material facts.
- Fraudulent actions
must directly lead to the formation of the contract.
Example:
A
sells a car to B, falsely claiming it is brand new, knowing it is used.
Legal Consequences:
Contracts
formed through fraud are voidable, and the deceived party may claim
damages.
4. Misrepresentation
Misrepresentation,
under Section 18, refers to innocent or negligent false statements that
induce the other party to enter into a contract.
Features of Misrepresentation:
- It involves false
information provided without fraudulent intent.
- The aggrieved party
is misled and enters the contract based on incorrect information.
Example:
A
sells land to B, claiming it is fertile, but later it is found unsuitable for
agriculture.
Legal Consequences:
Contracts
formed under misrepresentation are voidable, but damages for fraud are
not applicable.
5. Mistake
Mistake
is addressed in Sections 20-22 and refers to an erroneous belief about
facts or law at the time of entering a contract.
Types of Mistakes:
- Mistake of Fact:
- Bilateral Mistake: Both parties are
mistaken about a fundamental fact (contract is void).
- Unilateral Mistake: Only one party
is mistaken (usually does not void the contract).
- Mistake of Law:
- Mistakes about
Indian law do not excuse obligations, but mistakes about foreign law may
void a contract.
Example:
A
and B enter a contract assuming a ship is at sea, but it has already sunk.
Legal Consequences:
Bilateral
mistakes render the contract void.
Effects of Flawed Consent
- Voidability: Contracts
affected by coercion, undue influence, fraud, or misrepresentation are
voidable at the option of the aggrieved party.
- Restitution: Under Section
64, if a contract is rescinded, benefits received must be returned.
- Void Contracts: Contracts formed
due to bilateral mistakes are void.
Conclusion
Free
and genuine consent is essential for the validity of a contract. Flaws such as
coercion, undue influence, fraud, misrepresentation, and mistake undermine the
voluntary nature of agreements, jeopardizing their enforceability. By
addressing these flaws, the Indian Contract Act ensures fairness and protects
parties from exploitation, balancing individual autonomy with legal
accountability.
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