Free Consent under the Indian Contract Act
Free Consent under Indian Contract Act, 1872
1. Definition of Consent
Under the Indian Contract Act, 1872, consent refers to the agreement of the parties involved to enter into a contract.
According to Section 13 of the Act, “Consent” is defined as when two or more persons agree upon the same thing in the same sense.
2. What is Free Consent?
Free consent means that the consent of the parties is voluntary and not caused by any factor which vitiates or invalidates it.
For a contract to be valid and enforceable, free consent of the parties is essential.
If consent is obtained by coercion, undue influence, fraud, misrepresentation, or mistake, it is not free consent and the contract may be void or voidable.
3. Essentials of Free Consent
Consent is free when it is not caused by:
| Factors that vitiate consent | Explanation |
|---|---|
| Coercion (Section 15) | Consent obtained by force or threat |
| Undue Influence (Section 16) | Consent obtained by misuse of power or dominance |
| Fraud (Section 17) | Consent obtained by intentional deception |
| Misrepresentation (Section 18) | Consent obtained by false statement made without intent to deceive |
| Mistake (Sections 20-22) | Consent based on an error regarding fact or law |
4. Importance of Free Consent
Free consent is the foundation of a valid contract.
Without free consent, the contract is either voidable or void.
Ensures fairness, justice, and equity in contractual relations.
5. Detailed Explanation of Factors Affecting Free Consent
a) Coercion (Section 15)
Defined as committing or threatening to commit any act forbidden by law, or unlawfully detaining or threatening to detain property to obtain consent.
Consent obtained by coercion is not free.
Case Law:
Raghunath v. Union of India - Consent obtained under threat of harm was held to be invalid.
b) Undue Influence (Section 16)
When one party dominates the will of another and uses that position to obtain consent.
Relationship of trust and dominance is crucial.
Case Law:
Allcard v. Skinner - A contract obtained through undue influence is voidable.
c) Fraud (Section 17)
When one party intentionally deceives another to induce consent.
Includes false statements, concealment of facts, or any act intended to deceive.
Case Law:
Derry v. Peek - Defined fraud and distinguished it from misrepresentation.
d) Misrepresentation (Section 18)
A false statement made innocently (without intent to deceive).
Contract is voidable at the option of the party whose consent is affected.
Case Law:
Redgrave v. Hurd - Innocent misrepresentation can make contract voidable.
e) Mistake (Sections 20-22)
When parties consent based on a wrong belief about a fact or law.
Bilateral mistake (both parties mistaken) can render contract void.
Unilateral mistake generally does not void a contract unless one party knows of the other's mistake.
Case Law:
Bell v. Lever Brothers Ltd. - Mistake about the nature of contract can render it void.
6. Consequences of Absence of Free Consent
| Situation | Effect on Contract |
|---|---|
| Consent caused by coercion, undue influence, fraud, or misrepresentation | Contract is voidable at the option of the aggrieved party |
| Consent caused by mistake as to identity or nature of contract | Contract may be void or voidable depending on facts |
| Consent caused by unilateral mistake (unknown to other party) | Contract generally valid |
7. Summary
| Aspect | Explanation |
|---|---|
| Free Consent | Consent given voluntarily, without coercion, fraud, mistake, etc. |
| Essential for Contract | Valid contract requires free consent |
| Factors Vitiating Consent | Coercion, Undue Influence, Fraud, Misrepresentation, Mistake |
| Sections of Indian Contract Act | Sections 13, 15-22 |
| Legal Effect | Absence of free consent renders contract void or voidable |
| Key Case Laws | Raghunath v. Union of India, Allcard v. Skinner, Derry v. Peek, Redgrave v. Hurd, Bell v. Lever Brothers |
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