Transcript Meaning of Consent

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
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
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)
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.”
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.
Elements contd.
 Threatening to detain any property—caseBansraj 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.
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.
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;
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.
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 Rani @100%.
BURDEN OF PROOF-person in dominating
position will prove that consent was free.
Effects-voidable,repudiation.
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.
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.’
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;
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.