Free consent (Factors affecting consent) Section 14 of Indian Contract Act

Ruth Nish Parikh introduces the video, emphasizing its focus on a crucial topic related to L&C Pro. The aim is to provide valuable insights and knowledge that will benefit viewers in their understanding of this essential subject.

Free consent is a crucial element of a valid contract under Section 10 of the Indian Contract Act. A contract becomes void if any party's consent is not free, which can occur due to coercion, undue influence, fraud, misrepresentation, or mistake. According to Section 14 of the Act, for consent to be considered free it must remain unaffected by these factors. Understanding each factor that compromises free consent is essential in determining the validity of contracts.

Coercion, as defined in Section 15 of the Indian Contract Act, involves compelling someone to act through force or threats. Consent obtained under coercion is invalid if it results from pressure exerted by illegal actions outlined in the IPC. This includes threatening harm or unlawfully detaining property. For instance, if an individual threatens another with a gun to sell their house for a specific amount, this constitutes coercive pressure and renders any resulting contract unlawful.

Undue influence occurs when one party in a contract has the power to dominate another's will, leading to consent that is not freely given. This dominance must result in an unfair advantage for it to be classified as undue influence. For example, if a doctor exploits a patient's critical health condition by demanding the sale of their house for treatment, this constitutes undue influence and renders the contract invalid due to lack of free consent. According to Section 16 of the Indian Contract Act, situations such as authority figures over subordinates or fiduciary relationships can create conditions ripe for undue influence.

Misrepresentation occurs when a false statement of fact influences a contract. The Indian Contract Act identifies three types: unwarranted statements, breach of duty, and inducing mistakes about the subject matter. Unwarranted statements arise when someone makes claims without verifying their truth; for instance, if A sells his car believing it to be a 2018 model despite lacking confirmation. Breach of duty involves situations where an individual gains advantage by not disclosing critical information—like a doctor downplaying risks associated with surgery while still intending no deception. Lastly, inducing mistake refers to scenarios where one party causes another to misunderstand essential details in an agreement; for example, if a dealer misrepresents the mileage on a used car while knowing its true condition.

Fraud involves intentional deception to induce someone into a contract, characterized by five key elements: making false statements knowingly, actively concealing facts one is aware of, promising without the intention to fulfill it, engaging in acts designed to deceive, and any act or omission legally defined as fraud. Mistakes can be categorized into two types: mistakes of fact and mistakes of law. Mistakes of fact may occur unilaterally (by one party) or bilaterally (by both parties), while mistakes regarding law are divided between Indian law and foreign law; ignorance of Indian laws does not excuse contractual obligations.

Free consent is a crucial element for a valid contract, meaning that agreement must not be influenced by factors such as undue influence, coercion, misrepresentation, fraud, or mistake. A bilateral mistake can render an agreement void. Understanding these elements helps clarify the importance of genuine consent in contractual agreements.