Coercion under Indian Contract Act
Coercion under Indian Contract Act, 1872
Definition (Section 15):
According to Section 15 of the Indian Contract Act, 1872,
“Coercion is the committing or threatening to commit any act forbidden by the Indian Penal Code, or the unlawful detaining or threatening to detain any property, to the prejudice of any person, with the intention of causing that person to enter into an agreement.”
Key Elements of Coercion:
Committing or threatening to commit an act forbidden by IPC
This includes acts like assault, murder, theft, defamation, etc.
Even a threat of such acts is sufficient to constitute coercion.
Unlawful detention or threat to detain property
Detaining someone’s goods unlawfully or threatening to do so with the aim of forcing them into a contract is coercion.
Intention must be to cause the person to enter into a contract
The wrongful act must be done with the intent of making the other person agree to the contract.
It can be directed at any person
Not necessarily the person who enters the contract. Even coercion toward a relative or third party qualifies.
Effect of Coercion (Section 19):
If the consent to an agreement is obtained by coercion, the agreement is:
Voidable at the option of the party whose consent was so obtained.
That means the aggrieved party can either rescind (cancel) the contract or accept it.
Illustration (from the Act):
A threatens to shoot B if B does not sell his land to A at a low price. B agrees under threat.
This is coercion, and B can later treat the contract as voidable.
Important Case Law:
1. Ranganayakamma v. Alwar Setti (1889)
A widow was forced to adopt a boy by relatives who refused to allow her husband's body to be cremated until she adopted the child.
Held: Her consent was obtained by coercion, so the adoption was voidable.
2. Chikham Ammiraju v. Chikham Seshamma (1917)
A man threatened to commit suicide if his wife and son did not sign a release deed.
Held: A threat to commit suicide is coercion under the Act, even though suicide is not punishable (but is forbidden by IPC).
Important Points to Remember:
Coercion ≠ Undue Influence: Coercion involves physical threats or illegal acts; undue influence involves moral pressure or dominance.
Place doesn't matter: Even if the coercive act occurs outside India, it can still be considered coercion under Indian law if the contract is governed by Indian law.
Consent under coercion is not free consent under Section 14 of the Act.
Conclusion:
Coercion under the Indian Contract Act ensures that contracts made under force or threats are not legally binding unless the coerced party chooses to uphold them. The law protects individuals from being pressured into unfair agreements.
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