Free Consent

One of the essential elements of a valid contract under the Indian Contract Act, 1872 is free consent. Even if all other elements are present, a contract without free consent is not enforceable.

Let us understand the meaning, importance, and conditions related to free consent.

Meaning of Consent

According to Section 13 of the Indian Contract Act,

"Two or more persons are said to consent when they agree upon the same thing in the same sense."

This is called consensus ad idem, meaning a meeting of minds.

Example:
A agrees to sell his car to B. Both A and B understand and agree on the same car. This is proper consent.

Meaning of Free Consent

Section 14 defines free consent as consent that is not caused by:

• Coercion

• Undue Influence

• Fraud

• Misrepresentation

• Mistake

If consent is obtained through any of these factors, it is not considered free.

Factors Affecting Free Consent

Let us understand each of these five factors:

a. Coercion

Definition:
Coercion means forcing someone to enter into a contract by using threats, unlawful detention, or illegal acts.

Section 15 defines coercion as:

"The committing or threatening to commit any act forbidden by the Indian Penal Code, or the unlawful detaining or threatening to detain any property."

Example:
A threatens to harm B’s family if B does not sell his land. This is coercion.

Key Point: A contract caused by coercion is voidable at the option of the party whose consent was obtained under coercion.

b. Undue Influence

Definition:
Undue influence occurs when one party dominates the will of another and uses this position to gain an unfair advantage.

Section 16 explains that a relationship of trust or authority is usually involved.

Examples:

• Doctor and patient

• Parent and child

• Lawyer and client

Example:
A sick old man is persuaded by his doctor to sell his house at a very low price. This is undue influence.

Key Point: Contracts affected by undue influence are voidable at the option of the influenced party.

c. Fraud

Definition:
Fraud means intentionally deceiving another party to enter into a contract.

Section 17 defines fraud as acts committed to deceive, including:

• False statements,

• Concealment of facts,

• Promises made without intention of performing them.

Example:
A sells a car to B, falsely claiming it is new when it is actually second-hand.

Key Point: A contract induced by fraud is voidable and the injured party can also claim damages.

d. Misrepresentation

Definition:
Misrepresentation means making a false statement innocently, without intent to deceive.

Section 18 covers misrepresentation as:

• Unwarranted statements,

• Breach of duty without intent to deceive,

• Causing a mistake without intent.

Example:
A seller states that a car has run 10,000 km based on the odometer reading but is unaware it was tampered with.

Key Point: A contract based on misrepresentation is voidable, but no damages can be claimed unless the misrepresentation is fraudulent.

e. Mistake

Definition:
Mistake means an incorrect belief about something related to the contract. It can be:

• Mistake of fact (about an important fact),

• Mistake of law (generally not excused).

Mistakes can be mutual or unilateral.

• Mutual Mistake: Both parties are mistaken about a fact essential to the agreement → contract is void.

• Unilateral Mistake: Only one party is mistaken → generally not void.

Example:
A agrees to sell goods thinking they are on a ship that has already sunk. Both parties are unaware. This is a mutual mistake and the contract is void.

Key Point: A mutual mistake of fact renders a contract void, not just voidable.

Legal Consequences of Lack of Free Consent

Conclusion

In conclusion, free consent is vital for the validity of a contract under the Indian Contract Act, 1872. Consent must be genuine, without coercion, undue influence, fraud, misrepresentation, or mistake. If consent is not free, the contract may become voidable or void. Understanding free consent ensures the integrity and fairness of contractual relationships.