NOTES


CA-Foundation > Business Laws > The Indian Contract Act, 1872 - Free Consent (Old & New)

Aabhas threatens to shoot Eashan if he does not sell his car to him for ₹ 20,000. Eashan signs the necessary documents for sale of car. Later on, Eashan wants to avoid the contract. Will he succeed? If so, why?



Ans.
Eashan can avoid the contract on the ground of coercion.
COERCION

Coercion is defined by section 15 of the Act as follows: Coercion is the:

1. committing or threatening to commit, any act forbidden by the Indian Penal Code or

2. unlawful detaining, or threatening to detain, any property

3. to the prejudice of any person whatever

4. with the intention of causing any person to enter into an agreement.

Explanation - It is immaterial whether the Indian Penal code is oris not in force in the place where the coercion is employed.

Whether threat to commit suicide amounts to coercion? The Madras High Court in Amiraju v Seshamma (1918) held by majority that threat to commit suicide amounts to coercion. The Court observed that though suicide was not punishable by IPC, yet it was one forbidden by the IPC, since an attempt to commit suicide is punishable. In this case a person threatened to commit suicide if his wife and son did not contract with his brother to release certain disputed property in his favour. The court held that the contract was caused by coercion.

Consequences of coercion

A contract brought about by coercion is voidable at the option of the party whose consent was so caused. [Sec. 19].


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Notes of The Indian Contract Act, 1872 - Free Consent (Old & New)



  1. What do you understand by “coercion” and “undue influence” under the provisions of the Indian Contract Act, 1872 ? What are the differences between them ?
    see in detail

  2. "Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud". Comment.
    see in detail

  3. ‘Aadi’ applies to a banker for a loan at a time when there is stringency in the money market. The banker declines to make the loan except at an unusually high rate of interest. Aadi accepts the loan on these terms. Whether the contract is induced by undue influence? Decide.
    see in detail

  4. Aabhas threatens to shoot Eashan if he does not sell his car to him for ₹ 20,000. Eashan signs the necessary documents for sale of car. Later on, Eashan wants to avoid the contract. Will he succeed? If so, why?
    see in detail

  5. Aadit and Eehaan were sailing in a ship which was on its way from London to Bombay. While the ship was passing through the Suez Canal, Aadit threatened Eehaan to throw him into the sea unless he agreed to sell his watch for ₹ 100. Eehaan agreed to sell the same. After reaching Bombay, Eehaan changed his mind. Can Aadit file a suit against Eehaan to get the watch?
    see in detail


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