The concept of coercion poses an important barrier to parties’ freedom when entering into contracts in the area of contract law. Coercion, often known as excessive influence or duress, is an umbrella term for an array of actions that undermine the voluntary character of contracts.
Coercion in the Law of Contracts
- As per the coercion meaning, according to Section 15 of the Indian Contract Act, 1872, coercion is defined as engaging in any act that is expressly forbidden by the Indian Penal Code, threatening to engage in any such act, or unlawfully detaining or threatening to detain any person’s property with the primary goal of endangering or harming in an effort to obtain a contract signed by them.
- In circumstances where one side is defending coercion, the burden of proof is with the other party. He has a greater burden of proof because, in the eyes of the law, mere likelihood or suspicion does not equate to coercion.
- coercion example: Unlawfully seizing B’s vehicle, A demands that B sign a promissory note that benefits him. To retrieve his automobile, B consents to sign the note. This is a forced contract that B has the right to later revoke.
Coercion in Law: How Does it Affect any Contract?
- The agreement will almost always be revoked if it turns out that coercion was used during its formulation.
- Contract rescission results in the cancellation of the entire agreement.
- The obligations outlined in the contract are discharged for both parties.
Case Law for Coercion
- In the case of Chikham Amiraju v Chikham Seshamma, a Hindu man makes a suicide threat, prompting his partner and child to carry out the arrival of several properties for his sibling, which they have pledged to be their own. It was decided that the risk of suicide equates to intimidation, and the discharge deed is therefore voidable due to the application of section 15.
- In the case of Askari Mirza v Bibi Jai Kishori, an individual was the subject of a criminal indictment, and fearing the repercussions of being arraigned, he entered into an agreement regarding the next gathering abandoning the indictment. It was decided that the Indian Penal Code does not inherently prohibit demonstrations with the possibility of criminal indictment. Thus, consent is significant.
Coercion in Law of Contract: Its Effect
- According to the Indian Contract Act of 1872, compulsion results in the contract being deemed voidable. This means that the aggrieved party of the contract will decide whether they want to perform the contract with the other party or rescind the contract and nullify the contract.
- The party whose consent did not come free and whose consent was affected by coercion can decide to rescind the contract at his choice.
- Furthermore, in the event that goods or consideration were provided under a contract that was impacted by coercion, they must be reimbursed or returned as soon as the party who was harmed cancels the agreement.
- Nonetheless, the person who feels wronged must demonstrate that force had an impact on their consent and that they did not offer it voluntarily for the contract.
Laws against Coercion: Defences
A defendant in criminal court may assert that they were forced to commit a crime. If they didn’t put themselves at risk by being careless, they might do so. In general terms, this defense needs the following components:
- The defendant was under duress to conduct the illegal act because there was an immediate threat of significant physical injury, and
- The defendant had a legitimate fear that the other party would carry out the threat.
A defendant can typically win such a defense if they can demonstrate that they were not compelled by presenting evidence of the three above components.
Coercion is the use of force or threat to compel someone to sign a contract against their choice. Coercion in the contract is seen as one of the key elements that influence a party’s or individual’s decision to enter into a contract by compelling them to do so when they otherwise would not have. The person whose consent was impacted by compulsion bears the burden of proof in circumstances of coercion. Any contract that was made under duress is voidable at the behest of the person who was wronged, and if any products or money were paid in a deal where consent was impacted by duress, they must be returned when the contract is canceled.
Coercion in Law of Contracts FAQs
1. What are the essentials of coercion in a contract?
“Coercion” is defined as engaging in any activity that is prohibited by the Penal Code, threatening to engage in any of these activities, or unlawfully detaining or threatening to detain any property, to the detriment of any individual, with the goal of forcing an individual to sign a contract.
2. What are the effects of coercion in a contract?
Because of the coercion, the contract is now voidable. This indicates that the party whose consent was not freely given may choose to void the contract. Therefore, the aggrieved party will choose whether to carry out or nullify the agreement.
3. When consent to the contract is caused by coercion?
When coercion, fraud, or misrepresentation results in consent to an agreement, the agreement becomes voidable at the discretion of the party whose consent was obtained in this way.
4. What is the main objective of coercion?
The objective of coercion is to replace the victim’s goals with one’s own. Because of this, compulsion is viewed by many social theorists as the exact opponent of freedom.
5. How do you prove coercion in a contract?
Coercion requires that the threat be illegal and that it be proven beyond a reasonable doubt that the other party was coerced into signing the agreement by using force.
6. Is the coercion contract void or voidable?
When coercion, fraud, or misrepresentation results in consent to an agreement, the agreement becomes voidable at the discretion of the party whose consent was obtained in this way.
7. What is the conclusion of coercion in a contract?
Any contract made under duress is voidable at the complaining party’s discretion.
8. How does coercion affect free consent?
Coercion results when someone threatens, coerces, or uses prohibited acts against another individual. It indicates that one or both of the participants may have entered the country under duress, engaged in unlawful activity, violated the Indian Penal Code, etc.
9. Is coercion justified?
In situations where there is a possibility of harm to others, coercion may be morally acceptable. In these situations, the use of coercion is frequently defended by using Mill’s damage principle, which holds that violating someone else’s rights may be acceptable in order to protect others from harm.
10. What is the test for coercion?
The direct coercion test provides precise, replicable responses to debates in this domain while upholding the careful equilibrium the Framers established between free expression, free exercise, and establishment.
11. Is coercion good or bad?
It is generally accepted that unlawful acts of threat or coercion are immoral because they violate the targets’ autonomy or freedom.
12. What is freedom of coercion?
There are two main ways that behavior analysis has addressed freedom from coercion. It has been understood to comprise two things: first, a broader range of alternative situations that grant access to important consequences; and second, options that let one escape from unpleasant stimuli.
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