law of contract (s2)

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Contract under Coercion

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Page 1: Law of Contract (s2)

Welcome To Presentation

On

Coercion

Page 2: Law of Contract (s2)

Presented By

Lutfur Rahman

ID: 141-26-565

Section: A

Department of Law

Daffodil International University

Page 3: Law of Contract (s2)

Coercion

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.

Dictionary meaning of word ‘coercion’ is: compelling someone by force, intimidation or authority, especially without regard for the individual’s desire or volition.

Page 4: Law of Contract (s2)

Consent is said to be caused by coercion when it is obtained by pressure exerted by committing or threatening to commit any act forbidden by PC; or unlawfully 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.

It is immaterial whether the PC, is or is not in force in the place where the coercion is employed.

Coercion may be caused by any person, not necessarily a party to the contract.

Coercion need not to be directed against the contracting party, or his parent, wife or child.

Coercion

Page 5: Law of Contract (s2)

An agreement, the consent to which is caused by coercion is voidable at the option of the party whose consent was so caused.

Section 19 of the Contract Act, 1872 declares that when consent to an agreement is caused by coercion, or the agreement is a contract voidable at the option of the party whose consent was so caused.

A contract is voidable if the consent of a person was obtained by the use of coercion.

Coercion

Page 6: Law of Contract (s2)

Chikkam Amiraju v. Chikkam Sheshamma

In this case, by threat of suicide, a Hindu, induced his wife and son to execute a release in favour of his brother in respect of certain properties which they claimed as their own.

It was held by the majority “that the threat of suicide amounted to coercion within Section 15 and the release deed was therefore voidable”.

The difference of opinion related to whether suicide is an act forbidden by the PC. An attempt to commit suicide is punishable under the code, but there is no punishment provided for suicide.

Page 7: Law of Contract (s2)

Thanks Everybody