CMA Foundation · Fundamentals of Business Laws and Business Communication · Capacity of Parties, Free Consent
Which of the following is NOT listed in Section 14 as a cause that prevents consent from being free?
Inadequacy of consideration is not listed in Section 14. Consent is not free only when caused by coercion, undue influence, fraud, misrepresentation or mistake (subject to Sections 20 to 22), so a poor price alone does not affect free consent.
- AMistake, subject to Sections 20, 21 and 22
- BMisrepresentation
- CInadequacy of considerationCorrect
- DUndue influence
Explanation
Section 14 lists coercion, undue influence, fraud, misrepresentation and mistake (subject to Sections 20, 21 and 22). Inadequacy of consideration is not in the list, so it does not by itself make consent not free.
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