Free Consent

Free Consent Free Consent : Section 13 enacts “Two or more persons are said to consent when they agree upon the same thing in the same sense.” Section 14 defines : “Consent is said to be tree when it is not caused by— (1) coercion, as defined in section 15, or (2) undue influence, as defined in section 16, or […]


Misrepresentation Generally speaking, Misrepresentation , which is known as innocent misrepresentation , is a mis-statement of a material fact not known to be false or non-disclosure of facts (when there is a duty to disclose) without an intention to deceive. A representation is a statement made by one party to the other before or at the time of contracting, with […]

Undue Influence

Undue Influence A contract is said to be induced by Undue Influence where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and the party which is in such position uses that position to obtain an unfair advantage take over the other Section 16(1). “In […]

Discharge of surety from liability

Discharge of surety from liability Discharge of surety from liability Following are the modes through which the liability of a surety may be discharged: (1) By notice of revocation Section 130 provides : “A continuing guarantee may at any time be revoked by future transactions, by notice to the creditor.” It is clear from Section 130 that revocation will be […]


Coercion According to S. 15, Coercion is (i) the committing (or threatening to commit) of any act forbidden by the Indian Penal Code, or (ii) 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. Explanation – It is immaterial whether the […]

Damages for breach of Contract

Damages for breach of contract Principles for determining damages for breach of contract The damages awarded on account of a breach of contract may be either general or special. General damages are such as naturally arise in the usual course, from the breach of a contract. Special damages are such which the parties know to be likely to result from […]

Fraud : Indian Contract Act

Fraud : Indian Contract Act When a party to a contract makes a misrepresentation knowing that it is false, with an intent to deceive, or not caring for its truth or falsehood, the misrepresentation is said to be fraudulent. Section 17 states that — `Fraud’ means and includes any of the following acts committed by a party to a contract, […]