Free Consent – Indian Contract Act 1872

Last Updated on: 22nd April 2025, 11:41 am

Free Consent – Indian Contract Act 1872

What Does FREE Consent Mean under Indian Contract Act

Consent means assent (to agree each other on some matter) between two parties. When the parties are not willingly agreeing (they are forced to agree under some duress), or do anything mistakenly, it is not considered as Free consent. Two or more persons are said to Consent, when they agree upon the same thing in the same sense i.e., consensus-ad-idem. (s.13)

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Elements affecting Contractual FREE CONSENT

Understanding Free Consent under Indian Contract Act

To create a valid contract, it is essential that consents of the Parties are Free.

The consent is not free when it is affected by any of the following (sec.14) :

  • Mistake (s.20 to 22),
  • Coercion (s.15),
  • Undue Influence (s.16),
  • Fraud (s.17),
  • Misrepresentation (s.18)

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Legal Consequences when Consent is not Free

Contract voidable : A contract is voidable at the option of the Party whose consent was affected by Coercion, Undue influence, Fraud or Misrepresentation. However, in case of unilateral mistake (i.e., where only one party is at mistake) and in case of mistake of Indian Law, the contract does not become void or voidable. (s.21)

  • Agreement void : If both the parties to a contract are at mistake, the agreement is void.

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Mistake in Contracts- Types of Mistakes and Legal Effects under Indian Contract Act

Mistake means something wrong done unintentionally. Mistake is some unintentional act, omission or error, arising from ignorance, forgetfulness etc.

Types of Mistakes: Mistake may be broadly categorised as  follows:

  • Mistake of Law of land:  Everyone must be aware of the Law of Land. One cannot plead ignorance of any law of the land (‘Ignorance of Law Is no excuse’ -Ignorentia Jures non excusat).  

So a contract is valid even if any of the party has committed mistake being ignorant of some law of the land.

Ex. X and Y made a contract on erroneous belief that a particular debt is time barred by Indian Law of Indian Contract. The Contract is valid and not voidable.

  • Mistake of Fact: Mistake of Fact arises when either or both parties are under a mistake of foreign law, or mistake of a fact essential to the agreement.

Types of Mistakes of Fact under Indian Contract Act

Mistake of Fact can be classified as follows:

  • Bilateral Mistake of Fact (s.20)
  • Unilateral Mistake of fact (s.22)
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Mistakes of Fact under Indian Contract Act

Bilateral Mistake of Fact  under Indian Contract Act (s.20)

Bilateral mistake arise when both parties make mutual mistake to a matter of fact essential to the agreement. Mistake in Foreign Law is treated like Bilateral Mistake of Fact. The agreement under Bilateral Mistake is void.

Ex. A sold some land to B. At the time of sale both parties believed in good faith that the area of the land sold was 10 hectares. It. however, turned out that the area was 7 hectares only. It is a case of Bilateral mistake and the agreement is void.

Types of Bilateral Mistakes of Fact under Indian Contract Act

  • Bilateral Mistake as to the Subject Matter : Where both the parties to an agreement make mistake relating to the subject matter (e.g., existence, identity, quantity of, quality of, title /  ownership of, price of subject matter).

Ex. X had 2 cows, one black and another white. X offered to sell the black cow to Y, at Rs 20,000. Y agreed to purchase the cow, believing that X is selling his white cow. Hence, there was no contract as there was bilateral mistake on the subject matter

(however, an erroneous opinion as to value of a thing is not considered as Mistake of Fact).

  • Bilateral Mistake as to the impossibility of performance : If both the parties believe that the contract is capable of being performed, but in real condition it is impossible to perform, the contract is void on the ground of impossibility of performance.

Ex. A, an engineer agreed to make a machine to supply B. None of the parties (A or B) knew that such machine will not perform with currently available technology. The contract is void.

  • Unilateral Mistake of fact under Indian Contract Act (s.22)

Unilateral mistake arises when only one party is mistaken. Contract arising out of Unilateral Mistake is neither void nor voidable, unless it is brought about by the other party’s fraud or misrepresentation.

Ex. A contracted with B for the erection of several houses. In calculating his price for the houses, A by mistake deducted a particular sum twice over. B signed the contract which correctly represented its intention. It is unilateral mistake with no intention to fraud or misrepresentation.  Hence, the contract is valid.

Ex. A picks up a piece of imitation jewellery from a jewellery shop (who sells Gold and imitation Jewellery), and buys thinking it is of real gold. The contract is valid and the buyer cannot demand to return the jewellery bought (however, if the shopkeeper sells by fraud telling it as gold jewellery, the contract is void / voidable).

  • Fundamental Unilateral Mistake : Sometimes, a consent is given under a fundamental mistake going into the root of the agreement. Though normally a unilateral mistake cannot be considered as a defense to avoid a contract, if the consent is given under a fundamental mistake going into the root of the agreement, such unilateral mistake, as shown in the following cases, makes the contract void.
  • Mistake in the identity of contracted person: Mistake in the identity of the person contracted with, if the identity of the party is essential and important to the contract (and not other attribute of the person).

Ex. B places order for various stationery supplies to S, his usual supplier. Unknown to B, S had sold his business to T. T sends the stationery to B, B upon discovering the facts, refuses to accept the stationery. T must take back the stationery as there is no contract between T and B ; B never Intended to enter into a contract with T. 

  • Mistake in nature of contract : Mistake in nature of contract, when there is mistake in essence of the contract.

Ex. A,an old man of feeble sight, signed a bill of exchange thinking it was a guarantee. The contract is void because the mistake is of essential fact.

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Unilateral Mistake vs Bilateral Mistake

Unilateral MistakeBilateral Mistake
One party at Mistake: When only one party to a contract is at mistake.Both parties at Mistake : When both the parties to a contract are at mistake.
The contract is not void or voidable : Normally Contract is not void or voidable.Agreement Void : In case of a bilateral mistake, the agreement is void.

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Contract created under Coercion

Coercion means fear, intimidation, physical or mental compulsion and even threat to damage of goods or property.

Ex. A tells his wife that he would commit suicide, if she did not transfer her personal assets to him. She does so under this threat.

What is Coercion under Indian Contract Act

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Acts of Coercion

Coercion is considered to be exercised in following cases:

  • Forbidden Act: Coercion is exercised when any act, forbidden by Indian Penal Code is committed.
    Ex. A threatens to kill B if B does not release him (A) from a debt which A owes to B. B releases A from debt under the threat. The release has been brought about by coercion.
  • Unlawful Detention : Coercion is exercised if some property is unlawfully detained or threatened to detain, to the prejudice of some person.
    Ex. A young widow was forced to adopt a boy under the threat of preventing the body or her husband, who had just died, from being removed for cremation. The adoption is voidable at the option of the widow as it is induced by coercion.
  • Intention to induce : Coercion arises only when the intention is to induce a party to enter into a contract.
    Ex. A says to B ‘ I shall not return the documents of title relating to your wife’s property, unless you agree to sell your property to me for Rs.2,00,000. B agrees to this with A. As A is inducing B to enter into a contract through coercion, B may refuse to sell to A.
  • Threats : Threat to commit suicide amounts coercion. However, following types of threats do not amount to coercion.
    • Threat to file a legal suit for legally valid reasons (threatening to implicate in wrong case is coercion)
    • Consent given on legal obligations,
    • Threat by workers,
    • Threat to detain property by mortgager.

Legal consequences of Coercion in Contract

  • Contract Voidable : When a contract is entered by any party effected by coercion, the contract is voidable at the option of the Party who was influenced by coercion. (s.19)
    Ex. X, a consignee was forced to pay an illegal charge to the carriage company in order to release his goods. He is entitled to recover the amount of charge which is illegally excessive.
  • Burden of Proof : The burden of proof of coercion lies on the Party who wants to relieve himself of the coercion. The injured (coerced) party is to prove that contract was entered into due to influence of coercion (in consequence to coercion).
  • Refund of Benefit : Any person receiving money or benefit arising out of contract under coercion, must return the money / benefit (s.72)
  • Restoration of Benefit : When a party rescinds a voidable contract, he shall restore to he original position (s.64).
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Legal consequences of Coercion in Contract

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Contract created under Undue Influence

Undue influence means compelling a Party to enter into a contract through dominating position.  A contract is said to be induced by undue influence where one of the parties is in a dominating position over the other and obtains unfair advantage over the other. So, there are 3 key elements of Undue Influence :

  • Dominating Position.
  • Misuse of the Dominating Position.
  • Unfair advantage derived.

Party in Dominating Position through Undue Influence in Contract

A person is deemed to be in a Dominating Position, when he is able to dominate the will of the another

Presumption of Dominance : A person is deemed to be in a Dominating Position, in the following cases:

  • Authority : When he holds real (or even sometimes apparent) authority over the other.
    Ex. A  Police officer threatening to write a statement / confession to an accused / detainee
  • Trust / Fiduciary Relation : When he stands in a fiduciary relation (relation of trust & confidence)
    Ex. A parentless minor girl was living with her cousin brother who was in the position of her local parents. The cousin brother got a deed executed by her in his favour.
  • Mental Capacity : Where he makes a contract with a person whose mental capacity is affected, like a person in distress (e.g., a medical attendant and his patient).
    Ex. X, a seriously ill patient, is influenced to undergo a medical treatment by his doctor, which was not medically necessary. X can avoid payment for such treatment on the plea of undue influence.

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  • Presumption of Undue Influence in Contract
    Normally, the influenced party has to prove that the other party derived advantage under Undue Influence. However, in case of relationship like, Master & Servant, Police Officer  & Accused, Tax Officer  & Tax Payer (Authority), Parent & Child , Preacher & Disciple, Solicitor & Client, Guardian & Ward, Trustee & Beneficiary (Trust / Fiduciary relation), Doctor & Patient, Fiance & Fiancee (Mental Capacity) etc. undue influence is presumed (need not be proved), unless proved otherwise.
  • Presumption of Undue Influence rebutted : However, such presumption of  Undue Influence can be rebutted if it is proved that:
    • Full disclosure of fact : Full disclosure of the fact was made to the party alleged to have been unduly influenced, at the time of entering into the contract.
      Ex. X being in debt to Y, the money lender of his village, contracts a fresh loan on terms which appears to be unconscionable. It lies on B to prove that the contract was not induced by undue influence.
    • Price not inadequate : The Price was not extremely inadequate.
    • Independent advice : The influenced party had independent and competent advice before making the agreement based on full knowledge of facts.
  • No presumption of undue influence : However, in following cases the undue influence is not presumed (undue influence has to be proved).
    • Husband & Wife (wife not pardanashin),
    • Landlord & Tenant
    • Debtor & Creditor

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Legal consequences of Contract created under Undue Influence

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Legal consequences of Contract created under Undue Influence

  • Agreement Voidable : When a contract is entered by any party induced by undue influence, the agreement is voidable at the option of the Party who was influenced. Any such contract may be set aside absolutely, or if the Party has received any benefit, upon such terms and conditions as the court may seem just & equitable. Court may cancel the contract and form a new contract with revised terms and conditions.
    Ex. A, a money lender gives a loan of Rs.500 to B, a poor farmer and B asked to execute a bond of Rs.1000 in favour of A. A then asks for payment of Bond. Court may set the bond aside, order B to repay A only Rs.500 with such interest as may deem fit.
  • Onus of Proof : The onus of Proof of Undue Influence lies on following Persons:
    • On the Plaintiff : To avoid a contract on ground of undue influence, the burden of proof of undue influence lies on the plaintiff to prove that the other Party used his dominant position to influence plaintiff’s consent on contract and the contract was unconscionable (unreasonable).
      Ex. A, a poor farmer, already owes money to B, a money lender. A takes fresh loan from B on terms which appear to be unreasonable. A pleads the contract was influenced. B has to prove that the contract was not induced by undue influence.
    • On the Dominating person : When a person is in a position to dominate and the transaction, on the face of it or on evidence produced appears to be unconscionable, the burden of proof that the contract was not undue influenced lies upon the dominating person. But the other party in order to save himself may counter prove that:
      • Disclosed material facts : He had disclosed all material facts,
      • No strong relationship : There is no strong relationship between parties,
      • Competent and independent advice : He had given enough time and opportunity to other party to receive competent and independent advice.

Undue Influence Exception- Contracts with Pardanashin Women

In case of Pardanashin Women, following rules apply:

  • Presumption of inducement : A contract with Pardanashin woman (woman who observes complete seclusion from men & not just who wears veils) is presumed to have been induced by undue influence, due to her peculiar situation. The law throws a special cloak of protection around her.
  • Independent Advise: Any person who has entered into a contract with a Pardanashin woman has to prove that no undue influence was used and she had independent advice, understood the contents and exercised her free will.

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Contract Created under Coercion vs Undue Influence

  • Undue Influence / moral influence : In coercion, the essence is threat (committing or threatening to commit), whereas, in case of undue influence, the essence is dominating position. In coercion, the consent is given under threat while in Undue Influence, the consent is given under moral influence.
  • Physical force / mental pressure : Coercion is of a nature of physical force, whereas Undue Influence is of a nature of mental pressure.
  • Third Party / Parties to contract : Coercion may be exercised by or directed to a third party whereas Undue Influence is exercised between the Parties to the contract.
  • No relationship / dominating position: In Coercion, relationship between the Parties is immaterial whereas in Undue Influence, one party is in dominating position over the other.
  • Criminal Act / Civil Act : Coercion involves a Criminal Act under the Indian Penal Code, but Undue Influence does not involve Criminal Act.
  • Party to set aside contract  / court to set aside contract: In Coercion the aggrieved party has the option to set aside the contract, whereas in case of undue influence, only the court has the discretion to set aside the contract absolutely or upon such terms and conditions as deemed fit.
  • Compel to enter into a contract  / Obtain unfair advantage: The purpose of exercising coercion is to compel the other party to enter into a contract, whereas, undue influence is exercised to obtain an unfair advantage.

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Misrepresentation under Indian Contract Act – Meaning and Legal Effect

Misrepresentation means any statement of fact wrongly made, innocently or without knowledge, to enter into a contract

Ex. A, intending to sell his cow to B, says that his (A) cow gives 15 ltr. of milk per day. B, believing the statement to be true, buys the cow from A. Later on, B discovered that the cow hardly gives 1.5 ltrs. milk a day. This is misrepresentation.

Key Elements of Misrepresentation under Contract Act

  • Misrepresentation of material fact : It must be misrepresentation of material fact (essential facts relating to the subject matter). Mere mention of something which turns out to be wrong is not misrepresentation, it must be:
    • Wrong but the person making it believes to be true.
    • Made before the conclusion of contract.
    • Made with an intention to be acted by the person whom it is addressed to.
    • Actually have been acted upon and have induced to enter into entering the contract.
    • Made without any intention to deceive the other party.
  • Wrong statements made to third party : Wrong statements made to third party with an intention to be communicated to the plaintiff also amounts to misrepresentation.

Ways of making Misrepresentation under Contract Act

Misrepresentation may be made through:

  • Unjustified statement of facts. Where a positive assertion is made by a person (e.g., a statement of facts, a claim, a declaration, a contention) who believes it to be true (but in fact not true), such assertion amounts to misrepresentation.
  • Misleading a person. Where a person is duty bound towards some other person, but he acts in a manner misleading the other person resulting in a breach of duty, and thereby such person makes a gain or advantages at the cost of such other person, it amounts to misrepresentation, though the breach of duty was not intended to deceive such person.
  • Inducing others to make mistake. If a party to the contract innocently does something which causes the other party to make a mistake as to essential (i.e., material) part of the contract, the other party has acted under a misrepresentation.

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Legal consequences of Misrepresentation under Contract Act

Rights of aggrieved Party in Misrepresentation in Contract

In case of misrepresentation, the aggrieved party has the following rights

  • Rescission of contract : Avoid or rescind the contract.
    Ex. C, makes a statement to D, which is in fact untrue and thereby induces D to enter into the contract in good faith, but negligently. This results in misrepresentation and the contract becomes voidable at the option of D.
  • Restoration to the position : Accept the contract but ask to be placed in the position where he would have placed, had the misrepresentation turned out to be true. However, penal compensation is not allowed.
    Ex. The property seller sells a property, believing that it is free of encumbrances.  It was discovered (no party earlier knew) that there was a charge on property (a loan was outstanding). The buyer may ask to clear the charges on the property (clear the loan).

Exception : Rights of aggrieved Party in Misrepresentation in Contract

Right  of aggrieved Party forfeited : However, the aggrieved party loses his right to avoid/ rescind the contract if:

  • Benefits Taken : The Party, becoming aware of the misrepresentation, takes the benefit of the contract or in some way confirms it,
    Ex. Sohan induced Suraj to buy his motorcycle saying that it was in good condition. After taking the motorcycle, Suraj complained that there were many defects in motorcycle. Sohan proposed to get it repaired and promised to pay 40% of the cost of repairs which Suraj agreed to. After a few days, the motor cycle did not work at all. Suraj wants to rescind the contract. Having accepted to share the cost of repair, Suraj has lost the right to rescind the contract.
  • Restoration not possible : If the restoration to original position is not possible.
    Ex. A sold his mine to B. During negotiations, A had made certain statements about the mine which were incorrect, though A honestly believed them to be true. After having worked the mine for six months B discovered the true position. B cannot rescind the contract because the parties cannot be restored to their original position.
  • Third party Rights : If a third party has acquired right to the subject matter in good faith for value.
  • Discovery of the truth : The party whose consent was caused by misrepresentation had enough means to discover the truth using diligence.
  • No action taken within reasonable Time : If the aggrieved party does not act  within reasonable time.

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What Constitutes Fraud Under Indian Contract Act ?

Fraud means Acts committed by a party to a contract, or with his connivance, or by his agents, with intent to deceive another party thereto or his agent, or to induce him to enter into the contract (s.17)

  • Damage suffered : The other party acting upon the representation must have suffered loss. There is no fraud without damage.
  • Committed by a party to the contract : It must have been committed by a party to the contract or anyone with the connivance of a party to the contract.

Characteristics of Fraud under Contract Act

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Characteristics of Fraud under Contract Act

  • Untrue Statement : Suggestion of a fact, which is not true, or believe it to be not true;
    Ex. Y with an intension to deceive X, falsely represented 100 quintals of cotton bales in his godown, there by inducing X to buy the godown. The contract is voidable at the option of B.
  • Active concealment :  Active concealment of a fact by one having knowledge or belief of the fact;|
    Ex. Ram while working on the field of Rahim discovered some hidden jewellery and concealed the fact. Later on he managed to purchase the field from Rahim. This contract is voidable at the option of Ram.
  • False representation : There must be a false representation or assertion. If the representation is true when it is made, but become untrue to the knowledge of the party making it, then it must be corrected, otherwise the other Party can rescind it.
    Ex. C make an untrue statement to D with the intention of inducing D to enter into a contract with him, this amounts to Fraud.
    Ex. C offers to sell to D a painting as original work, which only C knows is a good copy of a well-known masterpiece. D agrees to buy thinking it original. Held, D may rescind the contract.
  • Reckless Act :  The person making the representation knows it to be false or makes it recklessly not caring whether it is false or true.
  • Intent to induce : The representation must have been made before the conclusion of the contract, with an intention to induce other party to act on it.
  • Party induced : The other party must have been induced to act upon the representation.
    Ex. A, a businessman, truly represented to B, a prospective buyer, that his business turnover was Rs.20 Lakhs a year. Five months later when B bought the business, it had considerably gone down on account of A’s serious illness. A did not disclose this fact to B. B may avoid the contract as A ought to have disclosed the fact.
  • Party deceived : The other party must have relied upon the representation and was deceived. A mere attempt to deceive is not fraud unless the party was actually deceived.
    Ex. S brought an electric oven from P. The oven was defective but P had fixed it up, S did not check the woven and started using it. The oven was completely destroyed. Held, the oven was destroyed due to other cause and not for the problem which has been already fixed up by P. So S has to pay for the Oven.

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Disclosure of Fact in Contract

All the Parties to contract should disclose all materials facts relating to Contract

Statutory Disclosures : In particular, the following facts must be disclosed :

  • Disclosure of Material Facts: Having regards to the circumstances, it is the duty of the person (who remained silent) to speak out the fact.
  • Latent known defects : Where the seller fails to disclose the buyer of a latent known defect (not apparent in ordinary inspection) in the product being sold.
  • Disclosure by Trustee : A Trustee does not make full disclosure of facts to the beneficiary while entering contract with him, his silence about any materials fact amounts to fraud.

Exceptions in Disclosure of Fact in Contract

Full disclosure may not be necessary in certain circumstances

No Concealment of Material Fact : A Party, while entering into a contract need not disclose all facts, but he should not actively conceal a material fact.

Ex. Two traders A and B enter into a contract. A has private information of a change in prices which would affect B’s willingness to proceed with the contract, but he did not disclose. It will not affect the contract. Because, it is not essential for A to disclose the private information.

Silence Equivalent to speech :  Mere silence to affect the willingness of a person to enter into a contract is not fraud, unless his silence is, in itself, equivalent to speech.

Ex. P is Q’s son. P says to Q that ‘If you don’t deny it, I shall assume it that the horse is sound’ Q says nothing. Here the relation between parties would make it Q’s duty to tell P if the horse is unsound, so Q’s silence is equivalent to speech and amounts to Fraud by Q.

Ex. A, a businessman, truly represented to B, a prospective buyer, that his business turnover was Rs.20 Lakhs a year. Five months later when B bought the business, it had considerably gone down on account of A’s serious illness. A did not disclose this fact to B. B may avoid the contract as A ought to have disclosed the fact.

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Legal consequences of Fraud in a Contract

A contract induced by fraud is voidable at the option of the party defrauded. The contract remains valid until it is avoided.

Rights of aggrieved Party under Fraud in Contract

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Rights of aggrieved Party under Fraud in Contract

  • Rescind the Contract : Rescind the contract within a reasonable time.
  • Insist on performance : Can insist on performance of the contract on the position he would have been, had the representation been true.
    Ex. A woman fraudulently represented to a firm of jewellers that she was the wife of a certain baron and thus obtained two pearl necklaces on credit on some pretext with a view to buying them. She sold those necklaces to X. a third person. Held, X must restore the necklaces to jeweler.
  • Sue for damages : The Party whose consent was obtained by fraud, may sue for damages.
  • Restoration of Benefits : When a party rescinds a voidable contract, he shall restore (i.e., pay back) any benefit received by him under such contract, to the person from whom the benefit was received (sec. 64).

Instances of Rights of aggrieved Party forfeited in case of Fraud

However, the aggrieved party loses his right to avoid/ rescind the contract in following circumstances :

  • Truth Discoverable : Where the aggrieved party could discover the truth by ordinary diligence, as a prudent man would take in his own case.
  • Ignorance of Fraud : Where the party enters into the contract in ignorance of the fraud.
  • Affirmation of contract : Where the party affirms the contract after becoming aware of fraud.
  • Third Party Rights : Before the contract is avoided, a third party acquires the right in the subject matter for value, acting bona fide.
  • Consent not Free : When a party to a contract whose consent was not freely obtained, cannot be put in the position he would have been had the represented fact been true.
  • Intervention of Third parties:   Where interests of third parties intervene, before the contract is avoided.
  • Agents Knowledge: Where the truth though not known to the principal, was known to his agent.
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Forfeiture of Aggrieved Party Rights in Fraud

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Distinction between Misrepresentation & Fraud in Contract

  • No intention to deceive / No intention to deceive :  In misrepresentation, there is no intention to deceive. In fraud, the intention is to deceive.
  • Statement believed to be true / believed it to be untrue : In misrepresentation, the party making the statement believes it to be true, while in fraud, he believes it to be untrue.
  • Rescind the contract  / sue for damages also : In misrepresentation, the aggrieved party may rescind the contract or insist for restitution (there cannot be any suit for damages), while in fraud, he can sue for damages also (apart from his right to rescind or restitution).
  • Discovery with diligence: In misrepresentation, the aggrieved party cannot avoid the contract if he could discover it with ordinary diligence, while in fraud, in case of active concealment (or silence), the contract is voidable even though the aggrieved party had means of discovering the truth.

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Free Consent under Indian Contrcat Act 1972- Key Takeaways

  • Free consent is a vital element for the validity of a contract under Indian law.
  • Consent must be free and not obtained through coercion, fraud, or misrepresentation.
  • Coercion includes committing or threatening to commit any act forbidden by law.
  • Undue influence arises when one party dominates the will of another.
  • Fraud involves intentional deception to induce another into a contract.
  • Misrepresentation is an innocent false statement leading to a contract.
  • Mistake can be mutual or unilateral and may render a contract void.
  • Contracts formed without free consent are either void or voidable.

Free Consent under Indian Contrcat Act 1972- Frequently Asked Questions (FAQs)

1. What is free consent in Indian Contract Law?
Free consent means agreement between parties made without coercion, undue influence, fraud, misrepresentation, or mistake.

2. Why is free consent important in a contract?
It ensures that all parties have willingly agreed, making the contract legally enforceable.

3. What happens if consent is not free?
The contract becomes void or voidable depending on the circumstances.

4. What are the factors affecting free consent?
Coercion, undue influence, fraud, misrepresentation, and mistake.

5. Is a contract valid if signed under pressure?
No, contracts signed under coercion or undue influence can be challenged in court.

6. How does fraud affect consent?
Fraud invalidates the contract as the consent is not real or informed.

7. What’s the difference between fraud and misrepresentation?
Fraud is intentional deceit; misrepresentation is an innocent mistake.

8. What is the legal remedy for lack of free consent?
The aggrieved party can rescind the contract or seek damages.

9. What is undue influence under Indian Contract Act?
It’s when a dominant party uses their position to gain unfair advantage.

10. Can mistakes always void a contract?
Only mutual mistakes affecting essential terms can render contracts void.

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