Q. Explain in detail free consent and the factors affecting free consent in a contract.
Meaning of Free Consent
Consent is said to be free when it is given by the parties
willingly and without any pressure, coercion, undue influence, fraud, misrepresentation, or mistake.
Consent is the agreement of the minds of the parties involved in a contract.
If consent is not free, the contract may be
voidable at the option of the party whose consent was not free.
The law relating to free consent is governed by
Sections 13 to 22 of the Indian Contract Act, 1872.
Factors Affecting Free Consent
For a contract to be valid, the consent of the parties must be free. The following are the main factors that affect free consent:
1) Coercion
Consent is said to be obtained by coercion if it is compelled by the use of force or threat of injury.
Section 15 of the Indian Contract Act defines coercion as committing or threatening to commit any act forbidden by law, or unlawfully detaining property, to obtain consent.
Example:
Ravi threatens Suresh with physical harm unless Suresh signs a contract to sell his bike.
Consent obtained under this threat is not free.
Suresh can rescind the contract later.
2) Undue Influence
Consent is said to be obtained by undue influence when a party dominates the will of another and obtains consent by exploiting the relationship.
Section 16 of the Act defines undue influence and includes situations where a person in a position of trust or authority takes unfair advantage.
Example:
A lawyer convinces his client to sell property at a very low price for personal benefit.
The client’s consent is affected by undue influence and the contract is voidable.
3) Fraud
Consent is said to be obtained by fraud when a party deliberately deceives or misleads another to obtain their agreement.
Section 17 defines fraud and includes acts like false representation, concealment of facts, and active misstatement.
Example:
Ravi sells a car to Suresh claiming it has a new engine, while in reality the engine is faulty.
Consent is obtained by fraud and Suresh can cancel the contract.
4) Misrepresentation
Consent is said to be obtained by misrepresentation when a party innocently misleads another without intent to deceive.
Unlike fraud, misrepresentation is not intentional but still affects free consent.
Example:
Ravi tells Suresh that a piece of land is suitable for farming based on incorrect knowledge.
Suresh agrees to buy the land.
Consent is not free due to misrepresentation.
5) Mistake
Consent is said to be affected by mistake when both or one of the parties is under a wrong belief about a fact.
Mistake can be of two types:
- Mistake of Law: Mistake regarding the legal consequences of an act.
- Mistake of Fact: Mistake regarding a fact essential to the agreement.
Example:
Both parties believe a horse is alive and agree to sell it.
The horse was actually dead at the time of agreement.
Consent is affected by mistake and the agreement is void.
Effect of Absence of Free Consent
- If consent is
not free, the contract is
voidable at the option of the party whose consent was not free.
- The aggrieved party may
rescind the contract and
claim restitution.
- If the contract has already been executed,
restitution may be ordered by the court.
Conclusion (For Scoring)
Free consent is the
foundation of a valid contract.
Consent obtained under coercion, undue influence, fraud, misrepresentation, or mistake is not free and makes the contract
voidable at the option of the affected party.
The Indian Contract Act, 1872 ensures that only
fair, honest, and voluntary agreements are legally enforceable.
One-Line Exam Memory Tip
A contract requires free consent, and consent is not free if obtained by coercion, undue influence, fraud, misrepresentation, or mistake.