Understanding Free Consent: A Cornerstone of Valid Contracts

Understanding Free Consent: A Cornerstone of Valid Contracts

Section 10 of the Indian Contract Act, 1872 defines a contract as an agreement enforceable by law. One of the essential elements of a valid contract is free consent of the parties involved. Without free consent, an agreement cannot be considered a valid contract.

Free Consent: Definition Consent is said to be free when it is not obtained through coercion, undue influence, fraud, misrepresentation, or mistake. Section 14 of the Indian Contract Act, 1872 defines free consent.

Key Factors Affecting Free Consent (Sections 14-22)

• Coercion (Section 15): When one party uses force or threats to compel another party into agreement.
• Undue Influence (Section 16):Occurs when one party abuses a position of power to influence another’s decision.
• Fraud (Section 17): When false representations are made with the intent to deceive.
• Misrepresentation (Section 18): When false information is given innocently, but still influences the agreement.
• Mistake (Section 20-22): A mistake occurs when one or both parties enter into an agreement based on an incorrect assumption or belief about facts or law.

There are two types of mistakes:

• Mistake of fact: A misunderstanding of the facts or circumstances.
• Mistake of law: A misunderstanding or ignorance of the law.

For a contract to be valid under the Indian Contract Act, 1872, the consent of the parties must be free, meaning it should not be induced by coercion, undue influence, fraud, misrepresentation, or mistake. If any of these factors are present, the contract may be considered voidable at the discretion of the affected party.