It is not necessary for the coercion to be applied by the parties or by the contracting parties. It may be exercised on the next of kin of the contracting parties such as the son, wife, mother and may be exercised by the foreigner of whom the party is aware. Errors provisions are dealt with in three sections of the Indian Contract Act (sections 21,22 and 23). If the parties` error does not refute the approval, but only misleads the parties, Section 20 of the Indian Contracts Act applies. It says, « If both parties to an agreement are in a factual error essential to the agreement, the agreement is non-applicable. » The concept of free consent is very important in contract law and forms the basis of contract drafting. However, it becomes difficult to prove consent in most cases and appropriate review is therefore necessary. It is important that there be a meeting of minds, that is, that both sides must agree in the same way on the same thing. Only then will the agreement be respected. To obtain informed consent, it is essential to embody will, information and understanding. In order to exercise its own free will, there must be no undue influence or coercion.
Coercion occurs when a person threatens to do something to harm the other party or his property, if no consent is given. In order for a valid contract to be maintained, it is essential to guarantee the free consent of the parties. There is a concept of a consensual addem that implies that the parties who conclude the treaty must mean the same thing in the same sense. The agreement on contractual terms between the two parties should be on the same subject and on the same basis. The whole structure of contract law is based on the notion of consent placed on the highest base during each agreement. To validate the formation of contracts, the main element would be the obtaining of an authentic and free agreement of the parties. The mere acquisition of consent is therefore not sufficient, but consent must be obtained freely and voluntarily. For example, a lawyer told the complainant that his firm was worth $2,000 a year. The representation was true when it was made, but six months later, its value diminishes due to the serious illness of the accused.
Here, the accused is required to disclose his loss of value after six months due to his illness. How to influence consent is discussed and, in the event of coercion, inappropriate influence, fraud and misrepresentation, the contract tends to be damaged at the injured party`s choice. However, in the event of an error, the parties can only avoid the contract if there is a bilateral error by the party regarding the important facts of the agreement or if there is a problem with knowledge of foreign law. For example, if `A` Rupee gives 1000 to `B` to kill `C`. There is an agreement between the parties, but no contract, because it is illegal. Therefore, an agreement is a contract only if it meets the requirements set out in Section 10. In this case, an elderly and uneducated woman gave a significant financial advantage to her supervisor without value consideration, and it was found that an inappropriate influence had been exerted. The burden of proof lay with the administrator to show that it was a bonafide transaction and that no undue influence had been exerted. If the consent of the parties to an agreement is due to coercion, inappropriate influence, fraud and/or misrepresentation, the agreement is, at the party`s choice, whose agreement has been caused. (5) Any such act or omission, which the law expressly refers to as fraud.
Section 14 of the Indian Contract Act provides the negative definition of free consent.