Bangladesh Bank Training Academy

BUSINESS 1

Q1. EXPLAIN CONSENT UNDER INDIAN CONTRACT ACT [SECTION 13-22]
I] MEANING:
 General meaning of “consent” means “to agree”
 When two or more persons are said to consent, when they agree upon the “same
thing in the same sense” [Section 13]
 Consent is the essential ingredient of contract. But to make a contract valid, the
consent must be “Free Consent”
 A consent is said to be free, when it does not have below act;
1. Coercion
2. Undue influence
3. Fraud
4. Misrepresentation
5. Mistake
COERCION [SECTION 15]
A) MEANING:
It means committing or threatening to commit,
any act forbidden by Indian Penal Code or
Unlawful detaining or threatening to detain any property
With an intention to cause the other person to enter into an agreement
If any of this is present, consent is not free
consent, and the contract shall not be valid
Ex. A threatens to shoot B, if he does not let out his house to
A. B under fear agrees to let out his house to A. This
agreement is brought under by coercion. B’s consent was not
free. B can avoid the contract, even after agreeing.
Prof Farheen Ansari
B.com, CS, LLB, PGDIPR SYBCOM- Indian Contract Act 1872
Disclaimer: That the Professor is the holder of Copyrights of this given notes. Unless expressly provided in
writing, no part of these notes should be reproduced, distributed or communicated to any third party.
Further the Professor herein does not accept any liability, intended or unintended in respect of this report
 It is immaterial whether IPC is or is not in force in the place where coercion is
employed.
B) ANALYSIS OF SECTION 15:
 Coercion may proceed from anybody, not necessary contracting party
 It includes physical compulsion, fear and even danger to goods.
 It must be obtained by unlawfully detaining or threatening to detain person or
property
 There must be an intention to cause the other enter into an agreement
C) EFFECTS OF COERCION: [SECTION 19]
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.
A afterwards sues B for breach of contract at Calcutta.
A has employed