Government of India
Bare Act As Per The Government of India

Section 15 of Indian Contract Act

15. “Coercion” defined.— “Coercion” is the committing, or threatening to commit, any act forbidden by the Indian Penal Code (45 of 1860)or the unlawful detaining, or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement.

Explanation.— It is immaterial whether the Indian Penal Code (45 of 1860) is or is not in force in the place where the coercion is employed.

Illustration

A, on board an English ship on the high seas, causes B to enter into an agreement by an act amounting to criminal intimidation under the Indian Penal Code (45 of 1860).
A afterwards sues B for breach of contract at Calcutta.
A has employed coercion, although his act is not an offence by the law of England, and although section 506 of the Indian Penal Code (45 of 1860) was not in force at the time when or place where the act was done.

Final Thoughts

Introduction

The Indian Contract Act, 1872 lays down the legal rules for making valid contracts in India. One of the essential conditions for a valid contract is free consent of all parties. If consent is not free, the contract becomes voidable. Under Section 15 of the Act, coercion is one of the factors that makes the consent not free.

Meaning of Coercion (Section 15)

According to Section 15 of the Indian Contract Act: “Coercion” means the committing or threatening to commit any act that is forbidden by the Indian Penal Code (IPC), or the unlawful detaining or threatening to detain any property, with the intention of forcing a person to enter into an agreement.

In simple terms, coercion is using force, threats, or pressure (which are illegal under IPC) to make someone agree to a contract.

Essential Elements of Coercion

a) Act Forbidden by IPC: If a person commits or threatens to commit any act that is a crime under the Indian Penal Code, it is coercion. Example: Threatening to kill someone or to harm their family.

b) Unlawful Detention of Property: If someone wrongfully holds another person’s property to make them agree to a contract, it is coercion. Example: Keeping someone’s goods and refusing to return them unless they sign a contract.

c) Threat to Detain Property: Even a threat to hold back property unlawfully is coercion.

d) Consent Under Pressure: The main purpose of coercion is to force someone to enter into a contract against their free will.

e) It Can Be Done by Any Person: Coercion can be applied by the party to the contract or by any other person.

Explanation Clause

The law says: “It is immaterial whether the Indian Penal Code is or is not in force in the place where the coercion is employed.”

This means: Even if the act is done in a place where IPC is not applicable, still it will be called coercion if that act is illegal according to IPC.

Illustration (as given in the Act)

A, on board an English ship on the high seas, causes B to enter into an agreement by committing an act that amounts to criminal intimidation under IPC.
Later, A files a case against B in Calcutta for breach of contract.

Here, even though the act happened outside India (on high seas), where IPC is not applicable, it will still be treated as coercion because the act is forbidden by IPC.

Effect of Coercion on a Contract

Conclusion

Section 15 of the Indian Contract Act clearly defines coercion as any illegal pressure used to force a person into a contract. For a contract to be valid, all parties must give free and voluntary consent. If coercion is involved, the contract becomes voidable at the option of the party whose consent was not free. Courts strictly protect parties from entering agreements under pressure or threats.