Section 14 of Indian Contract Act
14. “Free consent” defined.— Consent is said to be free when it is not caused by—
(1) coercion, as defined in section 15, or
(2) undue influence, as defined in section 16, or
(3) fraud, as defined in section 17, or
(4) misrepresentation, as defined in section 18, or
(5) mistake, subject to the provisions of sections 20, 21 and 22.
Consent is said to be so caused when it would not have been given but for the existence of such coercion, undue influence, fraud, misrepresentation or mistake.
Final Thoughts
Introduction
In contract law, an agreement between parties must be made with free will. That means every party should agree voluntarily, without any pressure, trick, or confusion. This concept is called “Free Consent.”
Importance of Free Consent in a Valid Contract
Under Section 10 of the Indian Contract Act, a contract is valid only if it is made with free consent of the parties involved. If the consent is not free, the contract may become void or voidable, depending on the situation.
Definition of Free Consent – Section 14
According to Section 14 of the Indian Contract Act:
“Consent is said to be free when it is not caused by—
(1) Coercion (Section 15),
(2) Undue Influence (Section 16),
(3) Fraud (Section 17),
(4) Misrepresentation (Section 18), or
(5) Mistake (Sections 20, 21 and 22).”
The section also says: “Consent is said to be so caused when it would not have been given but for the existence of such coercion, undue influence, fraud, misrepresentation or mistake.”
This means that if any of the above five elements are present, then consent is not free, and the agreement may not be legally binding.
Factors that Affect Free Consent
(1) Coercion – Section 15: Coercion means forcing a person to enter into an agreement by using threats or physical force. In such cases, the consent is not free.
Example: A threatens to harm B’s family if B does not sell his land to A. This is coercion.
(2) Undue Influence – Section 16: Undue influence happens when one party uses their position of power or influence to get an unfair advantage over another weaker party. Here, the consent is not given freely but due to pressure from a dominating party.
Example: A sick person is persuaded by his caretaker to transfer all property to him. This may be undue influence.
(3) Fraud – Section 17: Fraud means intentionally deceiving someone to enter into a contract. If a contract is based on fraud, the consent is not free.
Example: A sells a car to B saying it is brand new, but he knows it is a damaged car. This is fraud.
(4) Misrepresentation – Section 18: Misrepresentation means giving wrong information without intention to cheat but still leading the other party to a wrong decision. Even though it is not intentional, it still affects free consent.
Example: A tells B that a machine is working properly, believing it to be true, but it is not. This is misrepresentation.
(5) Mistake – Sections 20, 21 and 22: Mistake refers to a situation where one or both parties are wrong about a fact related to the contract.
- Bilateral Mistake (Section 20): Both parties are mistaken about an essential fact. Contract becomes void.
- Unilateral Mistake (Section 22): Only one party is mistaken. Contract is usually valid unless the other party knew about the mistake.
- Mistake of Law (Section 21): Mistake of Indian law is not excused, but mistake of foreign law is treated as mistake of fact.
Example: A and B think a property exists, but it does not. This is a bilateral mistake, and contract is void.
“Consent is said to be so caused…”
This part of Section 14 explains that if a person would not have agreed to the contract without the presence of coercion, fraud, etc., then it is said that the consent was caused by that factor. In simple terms, if the wrong act influenced the decision, then the consent is not considered free.
Legal Effect of Absence of Free Consent
- If consent is not free, the contract is usually voidable at the option of the party whose consent was not free.
- If there is mutual mistake of fact, the contract is void (i.e., not enforceable by law).
Conclusion
Section 14 plays a crucial role in ensuring fairness in contract law. A contract must be made with honest, voluntary, and clear consent. If any party is influenced by pressure, fraud, or confusion, then the contract loses its legal strength.
Understanding this section helps protect people from unfair contracts and ensures that agreements are made with mutual understanding and willingness.
