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FREE CONSENT OF PARTIES  According to sec.10 of indian co. act it is very important that the consent of the parties of a contract must be free.it means.

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Presentation on theme: "FREE CONSENT OF PARTIES  According to sec.10 of indian co. act it is very important that the consent of the parties of a contract must be free.it means."— Presentation transcript:

1 FREE CONSENT OF PARTIES  According to sec.10 of indian co. act it is very important that the consent of the parties of a contract must be free.it means both the parties should agree upon the same thing in the same sense

2 Meaning of Consent ACC. TO SEC.10 of indian contract act, ‘Two or more persons are said to consent when they agree upon the same thing in the same sense.’ Imp.pts.--- Two or more persons agree upon a thing. They agree upon the same thing in the same sense. Case-Rafflesv/s wichelhouse----pearless oct. & december. Case-bala devi v/s mazoomdar----old lady executed a deedto manage her land Case---shart chand v/s kanai lal---one party got the sign. Of party by mis-representation as witness

3 Free consent  According to section 14 of indian co. act, consent is said to be free when it is not caused by;  Coercion(section 15)  Undue influence (section 16)  Fraud (section 17)  Misrepresentation (SECTION 18)  Mistakes (SECTION20 TO 22)

4 COERCION  According to section 15 of indian contract act, “ coercion is committing or threatening to commit any act forbodden by the indian penal code or the unlawful detaining or threatning to detain any property, to the prejudice of any person whatever,with the intention of causing any person to enter into an agreement.”

5 Essentials of coercion  Committing of any act forbidden by indian penal code-case- Rangnaykumma v/s Alwarsetti---a widow lady was forced to adopt a child.  Threatening to commit any act forbidden by indian penal code-case-Amiraju v/s seeshamma---husband threatened to commit suicide if release deed not given by wife.  Unlawful detaining of any property-case---an agent refused to handover books of a/cs unless released from liabilities.  contd.

6 Elements contd.  Threatening to detain any property—case- Bansraj v/s secretary—on non-payment of fee by son threat to attach property of father was given &father paid amt. under coercion.  Coercion can be used by promisor or any other person.  Coercion can be against the promisee or against any other person.  Objective of coercion is entering into contract with the party.  Place of coercion—whether indian penal code is or not in force.

7 Effect of coercion-  Voidable at the option of aggrieved party.  Demand of restitution-to give back benefit recd. Or taken.  Burden of proof—lies on aggrieved party.

8 Undue influence--  According to section 16 of indian co. act, ‘A contract is said to be induced by ‘undue influence’ where the relations subsisting between the parties are such that one of the parties is in the position to dominate the will of the other and uses that position to obtain an unfair advantage over the other;

9 Main pts.--  One party can dominate the other  The dominant party uses his position to obtain unfair advantages over the other.  The dominant party obtains the unfair advantage.  Position to dominate the will—  real or apparent authority.  fiduciary relationship.  unhealthy mental position.

10 Leading cases related---  MANNU SINGH V/S UMA DUTT PANDEY—a spiritual guru induced his devotee to gift him whole property.  DILARAM V/S SARDHA---doctor forced old man to pay excessive fee.  RANI ANNAPURNI V/S SWAMINATHAN -Loan to a BURDEN OF PROOF-person in dominating position will prove that consent was free. Effects-voidable,repudiation.

11 When undue influence suspect-  Contract without consideration.  Difference in age,knowledge,intelligence &status of parties.  Fiduciary relationship.  In case of pardanashin woman.  When transaction seems to be unconscionable.-case-Chunni kumar v/s roop singh-bond of rs.25,000 for borrowing amt. of rs.3700/- by heir to an estate.

12 Fraud--  According to section 17 of indian contract act, ‘fraud means and includes any one of the followings acts committed by a party to a contract or with his connivance or by his agent with intent to deceive or induce a person to enter into a contract; a] the suggestion as a fact, of that which is not true by one who does not believe it to be true; b] the active concealment of facts by one having knowledge or belief of the fact; c] a promise made without intention of performing it; d] any other act fitted to deceive; e] any such act or omission as to the law specially declared to be fraudulent.’

13 Essential elements of fraud--  Fraudulent work can be done by one party or by his agent.case—Resa rever silver mining v/s smith—smith applied for shares of a co.which issued prospectus containing false statements.  Courts declared the contract voidable at smith’s desire.  The suggestion that a fact is true when it is not true by one who does not believe it to be true;

14 Contd.-  Case-Kala Meah v/s Perperic—a person gave wrong statement about a property being sold by auction, courts declared it fraud. But he is not guilty if he believes it to be true  Fraud by active concealment-  A promise made without intention of performing it.  Any other act fitted to deceive.  Any such act or ommission as the law specially declared to be void.  The object of fraudulent work must be to deceive other party  The other party must have suffered some loss.


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