preview

Business Law

Better Essays

1.INTRODUCTION * Brief introduction: According to Section 10, ‘free consent’ of all the parties to an agreement is one of the essential elements of a valid contract. * ‘Consent’ defined:- Section 13 of the contract act 1872 defines the term ‘consent’ and lays down that “Two or more person are said to consent when they agree upon the same thing in the same sense” . Thus, consent involves identity of minds or consensus ad-idem i.e., agreeing upon the same thing in the same sense. If for whatever reason, there is no consensus ad-idem among the contracting parties, there is no real consent and hence no valid contract. * Example:- A, agrees to sell his Nano Car 2010 model for Rs. 80,000. B agrees to buy the same. …show more content…

‘Coercion’ can be employed against any person, whereas ‘duress’ can be employed only against the other party to the contract or the members of his family. 2. ‘Coercion’ may be employed by any person, and not necessarily by the promisee. ‘Duress’ can be employed only by the party to the contract or his agent. 3. ‘Coercion’ is wider in its scope and includes unlawful detention of goods also. ‘Duress’ on the other hand does not include unlawful detention of goods. Only bodily violence or imprisonment is duress. 3.UNDUE INFLUENCE (Section 16) * ‘Undue influence’ defined:- Undue influence means using superior power for obtaining the consent of the person who is weak in position and physical ability. * Section 16 (1) of the Contract Act defines undue influence as: (i) The relation between parties where one of the parties is in a dominating position over the will of the others. (ii) Using the dominating position to take an unfair advantage over the other. * Section 16 (2) of the Contract Act defines under influence as the position to dominate the will of the other in the following manner. (i) Real or apparent authority: Where a person holds some real or apparent authority over the other. This means that he / she is in some position where he / she has the power to dominate over the

Get Access