Section 13 of the act defines consent as “ two or more persons are said to consent where they agree upon the thing in the same sense”.

Free consent

Coercion is the committing or threatening to commit any act forbidden by the Indian Penal code or the unlawful detaining or threatening to detain any property.

Coercion

Undue influence refers to “ the unconscious use of power over another person, such power being obtained by virtue of a present or previously existing dominating control arising out of relationship between the parties.

Undue Influence

Parent and child Guardian and ward Trustee and beneficiary Religious advisor and disciple Doctor and patient Solicitor and client Fiancé and fiancée

Presumptions as to undue influence

In coercion, contract is obtained by committing or threatening to commit an act punishable under Indian Penal code.

In undue influence the consent is obtained by dominating the will of other.

Difference between undue influence and coercion

In the broadest sense, a fraud is a deception made for personal gain or to damage another individual.

Fraud is a crime and is also a civil law violation

Fraud

Making a false suggestion. The active concealment of a fact by a

person who has knowledge or belief of the fact.

A promise made without performing it. The party acting on the representation

should have been deceived and suffered damage.

Active concealment of the facts amounts to fraud.

Essentials of Fraud

Silence is fraud under two circumstances:

There is no general duty cast upon a party to a contract to disclose to the other party material facts within his knowledge but are unknown to the other party.this principle is known as ‘caveat emptor’(let the buyer beware).

Silence- whether fraud?

When a person is under no duty to speak, he may become guilty of the fraud by non-disclosure, if he voluntarily discloses something and then stops half the way.

It means a false statement of fact made by one party to another party, which has the effect of inducing that party into the contract. For example, under certain circumstances, false statements or promises made by a seller of goods regarding the quality or nature of the product that the seller has may constitute misrepresentation.

Misrepresentation

Positive assertion of the fact Breach of duty Causing mistake about the subject matter

Essentials of Misrepresentation

Mistake refers to mis-understanding or wrong thinking or wrong belief.

Mistake may be mistake of fact( unilateral or bilateral)

Mistake of law

Mistake