INTRODUCTION
COERCION
A contract is defined as “An agreement enforceable by law” in Section 2(h) of The Indian Contract Act, 1872. In layman’s terms, a contract is created when two or more parties fulfill a promise or carry out an action in exchange for money, goods, or services. The burden of demonstrating that assent was obtained through coercion is with the party attempting to avoid the contract. In other words, the one who feels wronged must demonstrate that his consent was not given voluntarily. Additionally, it covers actually committing an offense or threatening to do so that is expressly prohibited or forbidden under the Indian Criminal Code (IPC), 1860. Coerced acts are voidable, not void; hence, if the party whose will was coerced perceives any benefit in the contract, it may be enforceable.
ESSENTIALS OF COERCION
- Offer and acceptance : A proposal from one party to the other that specifies detailed terms to ensure that a contract may be enforced is known as an offer.
- Consideration : Consideration is just something received in return. It may be given in kind or cash. A contract must involve remuneration for the fulfillment of the promise or the services rendered by the other party in order for it to be enforceable.
- Lawful object and certainity : the idea of “certainty” might be interpreted as a contract’s provisions that are certain and not difficult to fulfill. If any of these elements are absent from the contract, it cannot be enforced.
- Intention to create a legal relationship : Domestic or social agreements are not regarded as legally binding contracts since they lack the intention to create a formal legal relationship.
- Capacity : The ability of both parties to enter into a contract is referred to as capacity to contract.
- Free consent of the parties : The idea of free consent is based on the consensus ad idem principle, which denotes an agreement of opinion. Simply said, there should be no pressure, fraud, deception, or undue influence in any deal.
UNDUE INFLUENCE
According to Section 16 of the Indian Contract Act, 1872, a contract is said to be produced by undue influence “where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other”. Example: A teacher makes his pupil sell his brand-new watch for a pittance in order to do well on the test. The undue sway in this case has an impact on the student’s consent. when one side to a contract has actual or apparent control over the other.
when there is a fiduciary connection between the parties to the contract.
In the event of temporary or long-term impairment of mental capacity, when one contracting party gets into a contract with the other. It is up to the defendant to demonstrate that he did not exert any undue influence and that the plaintiff gave his or her consent voluntarily in order to avoid a contract on the grounds of undue influence. The plaintiff must first establish that the other party was in a position to control the will and that he or she used that position to obtain the plaintiff’s consent to the contract.
DIFFERENCE BETWEEN COERCION AND UNDUE INFLUENCE
Coercion is the act of intimidating a person in order to persuade him to sign a contract. Unlawful influence is the practice of influencing another person’s free will by using one’s position of strength to the detriment of the lesser party. Use of force or intimidation to persuade someone to sign a contract is known as coercion. It involves engaging in or threatening to engage in unlawful behavior in order to win over a party. In contrast, an improper influence is one that compels someone to act against their own free will. The stronger party to a contract is persuaded to sign by the person in a position of authority using those factors to their advantage. Relationship of the Parties to the Contract The parties to the contract have no established relationship with one another. The parties to the contract have a fiduciary relationship, which is already formed. Whereas undue influence entails psychological pressure, coercion involves physical force. legal provisions Section 15 of the Indian Contract Act of 1872 applies to it. Section 16 of the Indian Contract Act of 1872 applies to it. Section 15 of the Indian Contract Act of 1872 defines coercion, while Section 16 defines undue influence. Actions Force, bodily harm, or threats. subjecting a person to social pressure or psychological pressure, as well as both. In the following example, “A” threatens to kill “B” if “C” does not buy his property. “A” is pressuring “C” in this situation. In exchange for receiving full marks on the final exam, a teacher instructs his pupil to sell him his car for a very low price.
Relevant case laws
Chikkam Ammiraju V. Chikkam Seshamma (1917) 41 Mad 33
Marim Bibi v. Cassim Ebrahim (1939) 184 I.C. 171 (1939) A.I.R. 278
CONCLUSION
Coercion and undue influence both stand in the way of the parties’ free consent, which is a crucial component of a contract. the parties to a contract freely consent. In conclusion, coercion can be defined as the use of physical force, whereas undue influence results from psychological pressure. One thing that is evident is that in both situations, if there isn’t free consent, the contract ends up being voidable. Because of this, the party whose will has been influenced by the other side may choose to nullify the contract.
REFRENCE
- Section 2(h) of The Indian Contract Act, 1872
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