Principle Two or more persons are said to consent if they agree upon the same thing in the same...........

Indian Contract Act (ICA)1872 Valid and Void Contracts

Principle: Two or more persons are said to consent if they agree upon the same thing in the same sense. Consent is said to be free when it is not caused by coercion, or undue influence, or fraud, or misrepresentation, or mistake. When consent to an agreement is caused by coercion, undue influence, fraud or misrepresentation, the agreement is a contract voidable (rescindable or terminable) at the option of the party whose consent was so caused. However, when consent to an agreement is caused by mistake as to a matter of fact essential to the agreement, the agreement is void.

Facts: ‘X’ threatens to gun down ‘Y’, if he (‘Y’) does not sell his property worth Rs. 20,00,000/- for Rs 1,00,000/- only. As a consequence, ‘Y’ agrees to sell it as demanded by ‘X’. Which of the following derivations is CORRECT?

There is a contract between ‘X’ and ‘Y’

There is an agreement between ‘X’ and ‘Y’ which can be enforced by the court of law

There is an agreement between ‘X’, and ‘Y’ which cannot be enforced by the court of law

There is a contract between ‘X’ and ‘Y’ which voidable at the option of ‘Y’

Explanation:

The contract is one where there is consent though it is not free.
Therefore, the contract shall be “voidable” at the option of Y,
as Y gave his consent under coercion