EFFECT OF FLAWS IN CONSENT

TAMIL NADU NATIONAL LAW SCHOOL

( A STATE UNIVERSITY ESTABLISHED BY ACT NO.9 OF 2012 )
Navalur Kuttapattu, Srirangam (TK), Tiruchirapalli – 620009, Tamil Nadu

PROJECT ON
“EFFECT OF FLAWS IN CONSENT”

SUBMITTED TO
Prof. K. Govindarajan, M.L.,
Professor of Law

BY
M.MANOJ
I year B.COM.LL.B (Hons)

(Reg No.BC0150013)

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ACKNOWLEDGEMENT

At the outset, I take this opportunity to thank my Professor Prof. K. Govindarajan, M.L.,

Professor of Law from the bottom of my heart who has been of immense help during moments of

anxiety and torpidity while the project was taking its crucial shape.

Secondly, I convey my deepest regards to the Vice Chancellor Arun Roy and the

administrative staff of TNNLS who held the project in high esteem by providing reliable

information in the form of library infrastructure and database connections in times of need.

Thirdly, the contribution made by my parents and friends by foregoing their precious time

is unforgettable and highly solicited. Their valuable advice and timely supervision paved the way

for the successful completion of this project.

Finally, I thank the Almighty who gave me the courage and stamina to confront all hurdles

during the making of this project. Words aren’t sufficient to acknowledge the tremendous

contributions of various people involved in this project, as I know ‘Words are Poor Comforters’. I

once again wholeheartedly and earnestly thank all the people who were involved directly or

indirectly during this project making which helped me to come out with flying colours.

DECLARATION

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I, M.MANOJ (Reg No:- BC0150013) do hereby declare that the project entitled “EFFECT

OF FLAWS IN CONSENT” submitted to Tamil Nadu National law school in partial fulfilment

of requirement of award of degree in undergraduate in law is a record of original work done by me

under the supervision and guidance of Professor Prof. K. Govindarajan, M.L.,

Professor of Law, Tamil Nadu National law school and has not formed basis for award of any

degree or diploma or fellowship or any other title to any other candidate of any university.

INDEX

S.NO CONTENTS PG.NO

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CHAPTER - 1 INTRODUCTION 5

CHAPTER -2 FORMATIOM OF CONTRACT 6

CHAPTER - 3 FREE CONSENT PART – 1 7

 3.1 - FREE CONSENT
FLAWS IN CONSENT 8
 3.2 - COERCION
 3.3 - UNDUE INFLUENCE 10
 3.4 - MISREPRESENTATION 12
 3.5 - FRAUD 14

CHAPTER - 4 FREE CONSENT PART – 2 16

 4.1 - MISTAKE
 4.2 - MISTAKE OF FACT 17
 4.3 – MISTAKE OF LAW 21
CHAPTER - 5 EFFECT OF FLAWS 22

CHAPTER - 6 CONCLUSION 23

CHAPTER - 7 BIBLIOGRAPY 24

1. INTRODUCTION
Law is a system of rules that are enforced through social institutions to govern behavior.
Laws can be made by a collective legislature or by a single legislator, resulting in statutes, by
the executive through decrees and regulations, or by judges through binding precedent,
normally in common law jurisdictions. Private individuals can create legally
binding contracts, including arbitration agreements that may elect to accept alternative

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arbitration to the normal court process. The formation of laws themselves may be influenced
by a constitution, written or tacit, and the rights encoded therein. The law
shapes politics, economics, history and society in various ways and serves as a mediator of
relations between people.
A general distinction can be made between (a) civil law jurisdictions (including Catholic
canon law and socialist law), in which the legislature or other central body codifies and
consolidates their laws, and (b) common law systems, where judge-made precedent is
accepted as binding law. Historically, religious laws played a significant role even in settling
of secular matters, which is still the case in some religious communities, particularly Jewish,
and some countries, particularly Islamic. Islamic Sharia law is the world's most widely used
religious law.
The adjudication of the law is generally divided into two main areas referred to as (i)
Criminal law and (ii) Civil law. Criminal law deals with conduct that is considered harmful
to social order and in which the guilty party may be imprisoned or fined. Civil law (not to be
confused with civil law jurisdictions above) deals with the resolution of lawsuits (disputes)
between individuals or organizations. These resolutions seek to provide a legal remedy (often
monetary damages) to the winning litigant. Under civil law, the following specialties, among
others, exist: Contract law regulates everything from buying a bus ticket to trading
on derivatives markets. Property law regulates the transfer and title of personal
property and real property. Trust law applies to assets held for investment and financial
security. Tort law allows claims for compensation if a person's property is
harmed. Constitutional law provides a framework for the creation of law, the protection
of human rights and the election of political representatives. Administrative law governs what
executive branch agencies may and may not do, procedures that they must follow to do it, and
judicial review when a member of the public is harmed by an agency action. International
law governs affairs between sovereign states in activities ranging from trade to military
action. To implement and enforce the law and provide services to the public by public
servants, a government's bureaucracy, military, and police are vital. While all these organs of
the state are creatures created and bound by law, an independent legal profession and a
vibrant civil society inform and support their progress.

2. FORMATION OF CONTRACT

There are five basic requirements that need to be satisfied in order to make a contract:
● An agreement between the parties (which is usually shown by the fact that one has made
an offer and the other has accepted it).

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● An intention to be legally bound by that agreement (often called intent to create legal
relations).
● Certainty as to the terms of the agreement.
● Capacity to contract.
● Consideration provided by each of the parties – put simply, this means that there must be
some kind of exchange between the parties. If I say I will give you my car, and you simply
agree to have it, I have voluntarily made you a promise (often called a gratuitous promise),
which you cannot enforce in law if I change my mind. If, however, I promise to hand over my
car and you promise to pay me a sum of money in return, we have each provided
consideration.
In addition, in some cases, the parties must comply with certain formalities. Remember that,
with a few exceptions, it is not necessary for a contract to be in writing – a contract is an
agreement, not a piece of paper. In this part of the project we will consider these effect of
flaws in consent.

3. FREE CONSENT PART – 1

3.1 FREE CONSENT

WHAT IS FREE CONSENT?

One of the essentials of a valid contract mentioned in section 10 is that the parties should
entire into the contract which their free consent

Section 10:

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All agreement are contract if they are made by the free consent of parties competent to
contract, for a lawful consideration and with a lawful object, and are not hereby expressly
declared to be void.

According to section 14, consent is said to be free when it not caused by

3. coercion, as defined in section15, or

4. undue influence, as defined in section 16, or

5. fraud as defined in section 17, or

6. misrepresentation, as defined in section 18, or

7. mistake, subject to the provision of section 20, 21 and 22.

Vitiating factors and their effect:

Where consent to an agreement is caused by coercion, undue influence, fraud or
misrepresentation, the agreement is a contract voidable at the option of the parties whose
consent was so caused.

Section 2(i)
An agreement which is enforceable by law at the option of one or more of the parties
thereto, but not at the option of the other or others, is a voidable contract.

Where consent is caused by the mistake, the agreement is void.

Void agreement is not enforceable at the option of either party.

FLAWS IN CONSENT

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3.2 COERCION

Definition [ S. 15]:
An agreement the consent to which is caused by coercion is voidable at the option of the
party whose was so caused. “coercion” is defined in section 15.

Section 15 “coercion”:
Defined:
“Coercion” is the committing, or threatening to commit, any act forbidden by the
Indian penal code (45 of 1860), 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
entire into an agreement.

Explanation:
It is immaterial whether the Indian penal code (45 of 1860) is or is not in force in the
place where the coercion is employed.

Technique of causing coercion:

Consent is said to be coercion when it obtained by the pressure exerted by either of
following technique:
1. committing or threatening to commit any act forbidden by the Indian penal code; or
2. unlawfully detaining or threatening to detain any property.

(i) Act forbidden by the Indian penal code:

It has been noted above that if a person commits or threatens to commit an act
forbidden by the Indian penal code with a view to obtaining the consent of the other person to
an agreement, the consent in such a case is deemed to have been obtained by the coercion.

This principle was pointed out in the case – Ranganayakamma v. Alwar setti,

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Fact: on the death of her husband, the husband’s body was not allowed to be removed from
her house for cremation, by the relative of the adopted boy until she adopted the boy.
Issue: validity of adoption of a boy by a widow, aged 13 years.
Decision: The question before the madras high court lead to decision that the adoption was
not binding on the widow as her consent had been obtained by coercion.

(ii) Detention of property:

According to section 15, coercion could also be caused by 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.
For example:
If an outgoing agent refuse to hand over the account book to the new agent until the
principle execute release in his favour, it is coercion.
If the detention of property is not lawful, there is no coercion. Thus, if a mortgagee refuses to
the convey the equity of redemption except on the term dictated by him, there is nothing
unlawful in it and, therefore, no coercion is cased in this case.

Comparison with English law:

The following comparison has been attempted by the madras high court.
What the Indian law call coercion is called in English law ‘duress or menace’. Duress is said
to consist in actual or threatened violence or imprisonment of the contracting party or his
wife, parent or child, by the other party or by anyone acting with his knowledge and for his
advantage. But coercion as defined in the section 15 is much wider and includes the unlawful
detention of property also. Further, coercion may be committed by any other person, not
necessarily the part of contract. Again, it need not be directed against the contracting party, or
his parent, wife or child. it may be directed against any person, even if he is a stranger. While
in English law, duress must be such as will cause immediate violence and also unnerve a
person of ordinary firmness of mind, these requisites are not necessary in Indian law.

3.3 UNDUE INFLUENCE

Section 16 of the Act defines ‘undue influence’ thus:

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1. 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 uses that position to obtain an unfair advantage over the other.
2. In particular and without prejudice to the generality of the foregoing principle, a
person is deemed to be in a position to dominate the will of another-
a) Where he holds a real or apparent authority over the other, or where he stands
in a fiduciary relation to the other; or
b) Where he makes a contract with a person whose mental capacity is
temporarily or permanently affected by a reason of age, illness, or mental or
bodily distress.

3. Where a person who is in a position to dominate the will of another, enters into a
contract with him, and the transaction appear, on the face of it or the evidence
adduced, to be unconscionable, the burden of proving that such contract was not
influenced by undue influence shall be upon the person in a position to dominate the
will of the other.

Nothing in the subsection shall affect the position of the section 111 of the Indian
evidence act, 1872 (1 of 1872).

The essential ingredients under this section are as under:-

1. One of the contracting party must dominate the will and mind of another; or
2. One of the contracting parties stand in fiduciary position to the another, e.g. minor
and guardian, trustee and beneficiary; husband and wife; or
3. One of the contracting parties hay a real or apparent authority over the other; or
4. One of the contracting parties is strong enough and upon whom the other has to
depend because of some infirmity mental or physical.
5. The dominating party has taken the unfair advantage over the weaker party or the
transaction is unconscionable.

Deferent form of influence

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The second paragraph of the section 16 of the Indian contract act make division
of the subject matter on the different principle, according to the origin of the relation of
dependence, continuing or transitory, which make undue influence possible. Such a relation
may arise from special authority or confidence committed to be done; or from the feebleness
in body or mind of the donor. A person in authority, or holding confidential employment such
as that of a spiritual, medical or legal advisor are called on to act with good faith and more
than good faith in the matter of accepting any benefit from those who are under authority or
guidance. Relationship of guardians and ward, father and so, trustee and cesturie que trust,
doctor and patient for the purpose of the section. Relationship of husband and wife and
paramour and mistress also fall in the same category. In fact their honourable and prudent is
to insist on the other party taking advice.
Consent give under undue influence is not a free consent. Hence, the party
who is subject to undue influence can avoid the contract.

Effect of undue influence

Section 19 of the Indian contract act provides that “when consent to an agreement is
caused by undue influence the agreement is a contract voidable at the option of the party
whose consent was so caused. Any such contract may be set aside either absolutely, or, if the
party who was entitled to avoid it has received any benefit there under upon such term and
condition as to the court may seem just.

Different between coercion and undue influence

In both the case the consent of the party to the contract is not free and not voluntarily
given. In both the cases the contract is voidable at the option of one of the parties whose has
been so obtained.

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3.4 MISREPRESENTATION

According to section 18 of the Indian contact act, Misrepresentation means and include-
1. The positive assertion, in a manner not warranted by the information of the person
making it, of that is not true, though believes it to be true;
2. Any breach of duty which, without an intent to device, gain an advantage of the
person committing it, or any one claiming under him, by misleading another to his
prejudice, or to prejudice of any one claiming under him;
3. Causing, however innocently, a party to an agreement, to make mistake as to the
substance of the thing which is subject to the agreement.

Kind of misrepresentation
Misrepresentation is of two kinds:
1. Innocent misrepresentation and
2. Negligent or fraudulent misrepresentation

In innocent misrepresentation, the assertion is false but the person making it believes it to be
true or dose now it to be false.
However negligent or fraudulent misrepresentation is deliberate or wilful and actionable and
damage may be claimed.

Essential of misrepresentation
The following are the essential of misrepresentation:
1. There must be the representation made by one party to another.
2. Such representation must relate to the material fact. It must not relate to the opinion or
intention. It does not involve dishonest intention.
3. Such representation must be untrue.
4. Such representation must be the cause of the consent.
5. Such representation must be the cause of the consent.
6. Such representation must be made with the intention that it shall be acted upon by the
other party.
7. Such representation may be innocent some times.

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Consequence of misrepresentation
A contract caused by the misrepresentation is voidable at the option of the party
whose consent has been so caused. Misrepresentation as to a part whould makes the whole
transaction voidable. The aggrieved party loses the right to rescind or avoid the contract if he,
after becoming aware of the misrepresentation, takes a benefit under the contract or in some
other way affirms it. Misrepresentation does not entitle the aggrieved party to claims
damages. The aggrieved party loses the right to rescind or avoid the contract, when the
subject matter was destroyed or a fraud or a third party has acquired right in it.

Remedies
The aggrieved party has the following remedies
1. He can avoid or rescind the contract; or
2. He can insist that the contract be performed and that shall be placed in the position in
which he he would have been if the misrepresentation made had been true.

A misrepresentation cannot influence or induce a transaction where the plantiff

a) Never knew of existence, or
b) He did not allow it to affect his judgement, or
c) Was aware of its falsity.

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3.5 FRAUD
According to the section 17 of the Indian contract act 1872 fraud defined –
Fraud means and includes any of the following acts committed by a party to a contract,
or with his connivance, or by his agent, with intent to device another party thereto or his
agent, or to induce him to enter into the contract:-

1. The suggestion, as a fact, of that which is not true, by one who does not believe it to
be true;
2. The active concealment of a fact by one having knowledge or belief of the fact;
3. A promise made without any intention of performing it;
4. Any other act fitted to device;
5. Any such act or omission as the law specially declares to be fraudulent.

Explanation-
Mere silence as to facts likely to affect the willingness of a person to enter into a
contract is not a fraud, unless the circumstance of the case are such that, regard being had to
them, it is duty of the person keeping silence to speak, or unless his silence, is, in itself,
equivalent to speech.

Kind of fraud
The classification of fraud is:
1. Actual or positive fraud;
2. Legal fraud or fraud in law; and
3. Constructive fraud.
Actual or positive fraud has been said to consist of circumventing, cheating or deceiving a
person to his injury, by any cunning, deception, or artifice.
Legal fraud or fraud in law is used by court to describe a species of actionable fraud in which
a corrupt motive, such as a desire to obtain a benefit or to cause an injury, was lacking, but
the other element were present.
A constructive fraud has to be said to be “an act which the law declares to be fraudulent,
without inquiring into its motive; not because arbitrary rule on this subject have been laid
down but because certain acts carry in themselves an irresistible evidence of fraud”
Essential element of fraud

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The following are essential element of a fraud

1. There must be representation which must be false. All the statement about the subject
matter may be called as representation. The representation is said to be fraudulent
which the person who it did not believe it to be true when be no fraud, except in case
where silence may itself amount to fraud or where there is an active concealment of a
fact.
2. The representation must be relates to facts. The representation must not relate to an
opinion, or statement of expression or intention. It must relate to facts. So a
declaration of intention or a mere expression of opinion will amount to fraud.
3. The representation must deceive the other party. The fraudulent representation must
be made with an intention to deceive and must deceive. A deceit which does not
deceive is no fraud.
4. The party who has been deceived must be suffers some loss. There is no fraud
without damage. To constitute a fraud it is necessary that he party must suffer some
loses of money or money’s worth or some other damage.
5. The representation must be made with the knowledge of its falsity or without belief in
its truth.
6. The representation must have induced the other party to enter into contract. A mere
falsehood is not enough to give a right to action. It must have induced the other party
to act upon it.

Consequence of fraud
A contract caused by fraud is voidable at the opinion of the party defrauded. The party
whose consent to the agreement was caused by the following remedies:
1. He may rescind the contract; or
2. He may insist on the performance of the contract and ask the other party to put
him in the position in which he would have been if the fraud where not
committed; or
3. He can also file a suit for damage. Fraud is a civil wrong. Hence compensation
is payable

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4. FREE CONSENT PART - 2

4.1 MISTAKE
According to the section 20 of the Indian contract act 1872-
Where the both the parties to an agreement are under a mistake as to a matter of fact
essential to the agreement the agreement is void.

Explanation-
An erroneous opinion as to the value of the thing which form the subject – matter of
the agreement, is not is deemed a mistake as to a matter of fact.

Type of mistake
1. Unilateral mistake
2. Bilateral mistake
3. Mistake non est factum

Unilateral mistake:
A mistake would be unilateral where one party is mistaken. Section 22 of the
contract act lays down that “a contract is not voidable merely because it was caused by one of
the parties to it being under a mistake as to a matter of fact”. Thus as a general rule, unilateral
mistake will not make a contract void.
Bilateral mistake:
a) Mutual mistake:
Mutual mistake occur where the parties misunderstood each other and are at
cross – purpose with each other. There is no agreement at all.
b) Common mistake:
Common mistake arises where both parties are ad idem. This is void
agreement.
Mistake non est factum:
It is not the deed of a party. It is a defence in an action founded on a document
when there has been a mistake as to the very nature of the transaction. This is a plea whereby
a defendant either alleged that will not execute the deed in question, or that he was labouring
under a mistake as to its nature, when he executed the same.

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4.2 MISTAKE OF FACT AND MISTAKE OF LAW:

Mistake of fact:
Fact means and include-
1. Anything, state of thing, or relation of thing capable of being perceived by the
senses;
2. Any mental condition of which the person is conscious.

Mistake of fact means a mistake which take when some fact which is really exist is unknown;
or some fact is supposed to exist which really does not exist. It means an erroneous belief
regarding the material fact essential to the agreement shall be void.

Mistake of fact may be

1. Bilateral mistake or
2. Unilateral mistake.

4.2.1 Bilateral mistake

A mistake of fact in the mind of both the parties of contract is called bilateral mistake. It is
also called mutual mistake. It establishes the absence of consent. It makes the contract void.
Mutual mistake has been termed by salmond as error in consensus.
A contract, where the promisor and the promise both have mistaken as to the existence of a
fact, which is so fundamental, that is from the basis of the contract, is said to be vitiated by
common mistake. Mistake may be said to arise when the parties have not meant the same
thing, or one or both, while meaning the same thing, may have formed untrue conclusion as
to some essential element in the agreement.

In order to render a contract void on the ground of mistake under section 20 of the contract
act, there should exist three things as under:
I. Both the parties to the contract must be under a mistake;
II. Mistake should be one of the fact and not of law; and
III. Mistake should be essential to the agreement.

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Section 20 of the Indian contract act deal with the effect of two kind of mistake:
I. Common mistake
II. Mutual mistake

Common mistake:
Common mistake is used to refer to the case where the parties are genuinely agreed but
have done so being mistaken however as to some fundamental fact relating to the agreement,
for instance, where the parties are unaware that the subject – matter of their agreement did
not exist.
In the word of Cheshire, “in common mistake, both parties make the same mistake. Each
knew the intention of the order and accepts it, but each is mistaken about some underlying
and fundamental fact. The parties for example are unaware that the subject matter of their
contract has already perished.”
The doctrine of common mistake according to which if there is a fundamental mistake as to
the essential of the agreement, the contract would be void is applicable to Indian law and that
is legal position in India as enunciated in section 20 of the contract act, 1872 .

Mutual mistake:
The term mutual mistake is used my Anson. As per Cheshire, in mutual mistake,
the parties misunderstand each other and are at ‘cross-purpose’.

Mutual mistake may be broadly classified under four heads:

a. Mistake regarding the existence of the subject – matter of the contract,
b. Mistake to the title,
c. Mistake as to the subject of thing contracted for;
d. Mistake as to any false and fundamental assumption going to the root of the contract.

Mistake as to subject matter:

Mistake as to subject matter of the contract may be of the following types.
i. Mistake as to the existence of subject – matter
The agreement is void when both the parties are under a mistake as to the existence of
the subject matter

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ii. Mistake as to the identity of the subject – matter

The agreement is void when there is a mutual mistake as to the identity of the subject
matter. The kind of mistake occurs when the seller intends to sell one thing and the
purchaser intends to buy a different thing.
iii. Mistake as to the title of the subject matter
The doctrine of mistake as to title or right is “nemodat quid non habet”. The buyer
may already be the owner of what the seller purports to sell. In fact, there is nothing
which the seller has to transfer. The transfer of ownership is intended but same is
impossible as the buyer is already the owner. Such an agreement is void due to mutual
mistake.
iv. Mistake as to the price of the subject matter
The agreement is void when there is a mutual mistake as to the price of the subject –
matter.
v. Mistake as to the quantity of the subject matter
If there is a mutual mistake as to the quantity or extant of the subject matter, the
agreement is void.
vi. Mistake as to the quality of the subject matter
If there is a mistake as to the quality of the subject – matter the agreement is void.

Mistake as to possibility of performance

If both the parties believe that a contract is capable of performance but due to
impossibility it cannot be performed, the agreement is void.

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4.2.2 Unilateral mistake

A mistake of fact in the mind of one party to the contract is called unilateral mistake.
In other words, it is the mistake of one party. It does not generally affect the validity of a
contract. It is not a valid ground of avoiding the contract. If a due to his own negligence or
lack of reasonable care does not ascertain what he is contracting about, he must blame
himself and cannot avoid the contract.

Section 22 of the contract Act, 1872 states that A contract is not voidable merely because it
was caused by one of the parties to it being under a mistake as to a matter of fact. Thus, as a
general rule, unilateral mistake will not render or make a contract void.

Mistake as to the nature and character of a written document or promise.

A contract shall be void if a party to the contract, without any fault of his own, makes a
mistake about the nature and character of the transaction or document.
Where the nature of transaction is affected it is referred as ‘non est factum’ i.e. ‘not to act’. A
person who has signed a contract mistakenly under some peculiar circumstance, such a case
is ‘non est factum’. This is a defence available to illiterate or the person to whom the
language of the deed id not known or blind people, who cannot read the document by
themselves. Negligence is not a relevant factor in such cases. It is a mistaken as to the nature
of promise.

Mistaken as to the identity of the contracting party

Where one of the parties represent himself to be some person other than he really is, it is
called as ‘mistake of identity’.

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4.3 Mistake of law

By law is meant only the general law of the land and accordingly a mistake of foreign law of
private right mark as a mistake of fact.

A mistake of law does not invalidate the contract. Ignorantia juris non excusat is the
maxim of the law.

Mistake of law may be of three types:

1. Mistake of the general law of the country;
2. Mistake of foreign law;
3. Mistake of private right of properties.

Mistake of the general law of the country

Mistake of law means an erroneous belief with regard to the provision of law or its
application. Every citizen is expected to know the law of the country. Mistake of law is not
excusable. If there is a mistake as to the law of the country, the contract cannot be avoidable.

Section 21 of the contract Act, 1872 provides that “A contract is not voidable because it was
caused by a mistake as to any law in force in India; but a mistake as to a law not in force in
India has same effect as a mistake of fact.

Mistake of foreign law

Ignorance of foreign law is excusable. So if a mistake is made b one of the parties to the
contract regard to foreign law, the contract will be void. Mistake of foreign law, the contract
will be void. Mistake of foreign law is generally treated as a mistake of fact. It does have the
same effect as a mistake of fact.

Mistake of private right of the parties

A mistake as to pre – existing private right cannot regarded as a mere mistake of law. It is
really a mistake of fact or of mixes law and fact. Mistake of private right is excusable. Hence
the contract can be avoided. Thus a promise to buy a thing belonging to him cannot be
enforced in the ground that it is a mistake of law.

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5. EFFECT OF FLAWS
Section 19 and 19A of the lay down the effect of flaws in consent thus:
19. viodability of agreement without free consent-
When consent to an agreement is caused by coercion, fraud or misrepresentation, the
agreement is a contract voidable at the option of the party whose consent was so caused.
A party to a contract, whose consent was caused by fraud or misrepresentation, may if he
thinks fit, insist that the contract shall be performed and that he shall be put in which he
would have been if the representation made had been true.
Exception
If such consent was caused by misrepresentation or by silence, fraudulent within the meaning
of section 17, the contract, nevertheless, is not voidabe, if the party whose consent was so
caused had the means of discovering the truth with ordinary diligence.
Explanation
A fraud or misrepresentation which did not cause the consent to a contract of the party on
whom such fraud was practised, or to whom such misrepresentation was made, does not
render a contract voidable.

19a. Power to set aside contract induce influence.-

When consent to an agreement is caused by undue influence, the agreement is a contract
voidable at the option at the option of the party whose consent was so caused.
Any such contract may be set aside either absolutely or, if the party who was entitled to avoid
it had received any benefit there under, upon such term as to the court may seem just

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 EFFECT OF FLAWS IN CONSENT

6 .CONCLUSION

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 EFFECT OF FLAWS IN CONSENT

7.BIBLIOGRAPHY
BOOK SOURCE

1. CONTRACT -1 - V KESAVA RAO

2. LAW OF CONTRACT – R.K BANGAI
3. THE INDIAN CONTRACT ACT – MULLA

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