What is the concept of Free Consent ?

 Explain the concept of Free Consent?

Meaning- 

When both parties to a contract enter into the contract through mutual agreement or their own free will, this is referred to as free consent. Free consent is one of the necessary elements of a valid contract; without it, no contract is valid or legally enforceable.

Example- On Monday, A offers his car to C for Rs. 2,000,000 at a specific location. C agreed with him on the same point. This is a contract because it includes free consent.

Free consent is not influenced by any person or parties involved in the contract, and it should be free of-

1.     Coercion

Coercion is the act of convincing someone to enter into a contract. Coercion occurs when threats are used to gain the consent of the other party. It is not freely given consent. It may involve causing physical and psychological harm to the individual in order to compel him to enter into an agreement.

Example- A went out for a walk, B, a stranger approaches A and pulls out his gun and asks A to give all his possessions. The consent of A is obtained by coercion here.

Effect of Coercion-

As per the Indian Contract Act, under section 19 it provides that-

(i) An agreement obtained by coercion is voidable at the option of the party whose consent was obtained in this manner.

(ii) A person who has received money or something delivered must repay or return it. He is bound to return whatever he obtains through coercion.

2.     Undue Influence

An agreement's consent must be free of any form of influence. When a party's consent is obtained through undue influence, the contract is void. Unwanted influence occurs when-

(i) One party to the contract is in a position of trust and faith and wrongfully controls the other party.

(ii) A person takes advantage of his dominant position to gain an unfair advantage over the other party.

Example-A sold his bike to his servant B for Rs. 35,000 after he finished his work. Permission is not freely given here, so B was influenced by his master.

Elements of Undue Influence-

a. The relationship of trust, confidence, believe, faith.

b. Unfair persuasion; careful examination of the terms of the contract.

Effect of Undue Influence-

(i) An agreement obtained through undue influence is voidable.

Any such contract can be set aside by the contract's parties; no third party is included.

3.     Fraud

When consent is obtained from another party through fraud, it is not free. Fraud is defined as a willful act committed by one party with the intent to deceive the other party. It refers to a false statement made knowingly without regard for whether it is true or false. Fraud is defined as any of the following acts:

(a) A false Suggestion- A false suggestion to a fact or making a false statement with knowledge that affects the contract is considered fraud.

(b) Concealment of fact- When one party conceals a fact from the other party that is critical to the contract and it is his duty to disclose it, this is considered fraud.

(c) Fake Promise- A promise made with no intention to perform it is also fraud.

(d) Any other act that has the potential to cheat.

(e) Any act that the law declares to be fraudulent.

Example- A sells his house to B at auction, which A knows is unsound, but A does not tell B about it. As a result, A committed fraud.

Effect of Fraud-

(i) The contract formed as a result of fraud is voidable at the option of the party with whom the fraud has cloned.  

(ii) The victim party has the right to cancel the contract.

(iii) Because of the fraud, the party is bound to repay or recover the damages.

4.     Misrepresentation

When the truth is misrepresented, this is referred to as misrepresentation. Misrepresentation is defined as a false representation made in good faith with no intent to deceive the other party.

Example- A told B that his radio was in good condition because of his trust in A, so he bought the ratio, but the radio did not work properly after a while, and B thought he had been misled by A, but A believed his radio was in good condition and had no intention of deceiving him, so this is misrepresentation on A's part.

Effect of Misrepresentation

If a party has suffered as a result of misrepresentation when entering into a contract, that party may choose to terminate or rescind the contract. As a result, the effect of misrepresentation is unavoidable.

5.     Mistake

Mistake is defined as an erroneous belief concerning something. There are two types of Mistakes-

(a) Mistake of Law

(b) Mistake of Fact

(a) Mistake of Law- The error of law may be related to the error of Indian laws. It means that the parties cannot ignore the laws and claim ignorance of the laws as an excuse. There are three types of legal errors:

 (i) Mistake of general law of the country.

(ii) Mistake of foreign law

(iii) Mistake of private rights.

(b) Mistake of Fact- Mistake of fact may be of two types-

     (i) Bilateral Mistake- Bilateral mistakes occur when both parties to a contract make a mistake of fact, that is critical to the contract.

    (ii) Unilateral Mistake- When only one party to a contract makes a mistake, this is referred to as a unilateral mistake. This is known as a unilateral mistake.

Example of Mistake- A enters into an agreement with B to purchase a horse, which he believes is a racing horse. A does not receive confirmation from B. In reality, a horse is not a racehorse. The contract cannot be cancelled by A.

Conclusion

           So, we examine the importance of free consent for a valid contract, but it must be free of fraud, error, undue influence, and so on.