Definition of Consent
An agreement is valid only when it is made with free consent of parties. Section 13 defines consent as, two or more persons are said to consent when they agree upon the same thing in the same sense.
Definition of Free Consent
Section 14 defines that, consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation, or mistake.
In other words, when the consent is obtained by coercion, undue influence, misrepresentation or fraud, the contract is voidable at the option of the aggrieved party. The following make the consent unfree.
Coercion
Section 15 defines, “Coercion is the committing or threat to commit, any act, forbidden by the Pakistan Penal Code, 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.”
The explanation to the Section says that “it is immaterial whether the Pakistan Penal Code is or is not is force in the place where the coercion is employed.”
The above definition can be analyzed as follows:
1. Commit or threat to commit
If a person commits or threats to commit any act which is forbidden by the Pakistan Penal Code to compel the other party to enter into a contract, is a contract made under coercion.
Examples
W threats to shoot M, if he does not give his house on rent. M agrees. The consent of M has been obtained by coercion.
A widow was threatened to adopt a boy otherwise her husbande’s dead body would not be allowed to be removed for cremation. She adopted the boy and later applied for cancellation of adoption. Held, that agreement was not binding. (Ranganayakamma vs. Alwarsetti).
2. Detain or threat to detain Property
If a person unlawfully detains or threatens to detain the property of another person to compel him to enter into an agreement, the agreement is voidable at the option of aggrieved party.
Examples
a. An agent refused to hand over the account books to the new agent unless the principal released him from all liabilities. The principal gave a release deed. It was held that the release deed was given under coercion. (Muthia vs. Karuppan).
b. The government threatened to seize the property of A, to recover the fine due from B, the son of A. A, paid the fine. It was held that the fine was recovered by coercion. (Bansraj vs. Secy. Of State).
3. Threat to Third Party
The threats may be directed against third persons who are near relatives of the person making the contract. Thus, a threat to injure one’s parents, child, husband, wife, brother etc may be coercion. Coercion need not be exercised only by the contracting party; it can be exercised by any person related to that party.
Examples
a. A threats to kidnap B’s son if he does not give him Rs. 2 lac. B agrees. The agreement is made by coercion.
b. A threatens to shoot B if he does not lend his house to C. B agrees. B’s consent has been obtained by coercion.
4. Enforcement of Pakistan Penal Code
It does not matter whether Pakistan Penal Code, 1860 is or is not is force in the place where the coercion is employed. If the suit is filled in Pakistan the provision of PPC will apply.
Example
A forced B to enter into an agreement, on a ship near Jeddah. B afterwards sued A for breach of contract at Karachi High Court. A had employed coercion although Pakistan Penal Code was not in force at Jeddah.
Effects of Coercion
The effect of coercion is as under: (Sec. 19 &72)
(1) The contract is voidable at the option of the party whose consent is obtained by coercion.
(2) When the aggrieved party decides to cancel the contract, he must the benefit received from the other party.
(3) The other party to whom money was paid or anything delivered under coercion must repay or return it.
(4) If the aggrieved party does not decide to cancel the contract, it remains a void contract.
Burden of Proof
The burden of proof that coercion was used lies on the party who wants to cancel the contract. He has to prove that he would not have entered into a contract, if the coercion had not been used.