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CMA Foundation · Fundamentals of Business Laws and Business Communication · Capacity of Parties, Free Consent

Under Section 14 of the Indian Contract Act, 1872, when is consent said to be caused by coercion, undue influence, fraud, misrepresentation or mistake?

Consent is said to be caused by coercion, undue influence, fraud, misrepresentation or mistake when it would not have been given but for the existence of that factor. A mere existence of such a factor that did not influence the decision does not make consent unfree.

  1. AWhen such a factor exists, whether or not it affected the decision
  2. BWhen it would not have been given but for the existence of such factorCorrect
  3. CWhen the other party gains a profit from the contract
  4. DWhen the contract is not in writing

Explanation

Section 14 says consent is so caused when it would not have been given but for the existence of the coercion, undue influence, fraud, misrepresentation or mistake. Mere existence of the factor without effect on consent is not enough, as the Explanation to Section 19 also shows.

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