Coercion

Indian Contract Act, 1872

1. FREE CONSENT COERCION BUSINESS LAW S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

2. ESSENTIAL ELEMENTS OF A VALID CONTRACT S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

3. Free consent Term ‘ consent ’ means agreement between the parties upon the same thing in the same sense, ie . Consensus ad idem . Absence of consent may arise from number of causes, viz., Nature of the contract Identity of the parties Subject matter of the agreement If the parties enter into an agreement concerning particular persons and things, but each has different persons or things in his mind, there is no agreement and no contract comes into existence between them. S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

4. FREE CONSENT Free consent is the consent which has been obtained by the free will of the parties out of their own accord. According to Sec.14 of the Indian Contract Act, 1872, consent is said to be free when it is not caused by : Coercion (Sec.15) Undue influence (Sec.16) Fraud (Sec.17) Misrespresentation (Sec. 18) Mistake (Secs.20,21&22) S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

5. 1. coercion Sec.15 of the Indian Contract Act, 1872, defines coercion as the committing or threatening to commit any act forbidden by the Indian Penal Code, OR, an unlawful detaining or threatening to detain , any property to the prejudice (hurtful) of any person to enter into an agreement. For Eg. Consent obtained at the point of pistol or intimidation. A threat to commit suicide with the intention of causing a person to enter into an agreement. Threats of imprisonment. S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

6. Essentials of coercion (evidences) There should be a clear utterance of threat. The threat should be to commit an act forbidden by the Indian Penal Code. It must be committed with the intention of causing the aggrieved party to enter into an agreement. Unlawful detaining or threatening to detain any property. Coercion may be employed by a party to the contract or by his agent. Coercion may be used against a party to the contract or against any other third person (who has interest in the agreement). S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

7. duress Coercion in India is known as duress in England. S.No . Coercion Duress 1. Coercion may be directed even against a third party. Duress must be aimed against the life of the contracting party, his wife or children. 2. Coercions may proceed from any person. Duress must proceed from the party to the contract. 3. For eg. , It may be by way of threat to commit suicide. For eg. , duress must be such as to cause immediate violence (bodily harm) S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

8. Burden of proof The burden of proof of an act of coercion vests with the aggrieved party . He/she should prove that his consent in the contract was obtained by force. Effect of coercion Sec. 16 provides that an agreement for which consent is obtained by coercion is voidable at the option of the party whose consent is so obtained. S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

9. S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM