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Section 19 - Voidability of agreements without free consent : Indian Contract Act 1872

 

What is Voidability of agreements without free consent? Section 19 of Indian Contract Act 1872

Section 19 of Indian Contract Act 1872 : "Voidability of agreements without free consent"

19. When consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused.

A party to a contract, whose consent was caused by fraud or misrepresentation, may, if he thinks fit, insist that the contract shall be performed, and that he shall be put in the position in which he would have been if the representations made had been true.

Exception.-If such consent was caused by misrepresentation or by silence, fraudulent within the meaning of section 17, the contract, nevertheless, is not voidable, if the party whose consent was so caused had the means of discovering the truth with ordinary diligence.

Explanation.-A fraud or misrepresentation which did not cause the consent to a contract of the party on whom such fraud was practised, or to whom such misrepresentation was made, does not render a contract voidable.

Illustrations
(a) A, intending to deceive B, falsely represents that five hundred maunds of indigo are made annually at A's factory, and thereby induces B to buy the factory. The contract is voidable at the option of B.

(b) A, by a misrepresentation, leads B erroneously to believe that five hundred maunds of indigo are made annually at A's factory. B examines the accounts of the factory, which show that only four hundred maunds of indigo have been made. After this B buys the factory. The contract is not voidable on account of A's misrepresentation.

(c) A fraudulently informs B that A's estate is free form encumbrance. B thereupon buys the estate. The estate is subject to a mortgage. B may either avoid the contract, or may insist on its being carried out and the mortgage-debt redeemed.

(d) B, having discovered a vein of ore on the estate of A, adopts means to conceal and does conceal, the existence of the ore from A. Through A's ignorance B is enabled to buy the estate at an undervalue. The contract is voidable at the option of A.

(e) A is entitled to succeed to an estate at the death of B; B dies; C, having received intelligence of B's death, prevents the intelligence reaching A, and thus induces A to sell him his interest in the estate. The sale is voidable at the option of A.

 

INDIAN CONTRACT ACT 1872

Section 2 - Interpretation clause

CHAPTER I THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS

Section 3 - Communication, acceptance and revocation of proposals

Section 4 - Communication when complete

Section 5 - Revocation of proposals and acceptances

 

 

Section 6 - Revocation how made

Section 7 - Acceptance must be absolute

Section 8 - Acceptance by performing conditions, or receiving consideration

Section 9 - Promises, express and implied

CHAPTER II CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS

Section 10 - What agreements are contracts

 

 

Section 11 - Who are competent to contract

Section 12 - What is a sound mind for the purposes of contracting

Section 13 - Consent defined

Section 14 - Free consent defined

Section 15 - Coercion defined

 

 

Section 16 - Undue influence defined

Section 17 - Fraud defined

Section 18 - Misrepresentation defined

Section 19 - Voidability of agreements without free consent

Section 19A - Power to set aside contract induced by undue influence

Section 20 - Agreement void where both parties are under mistake as to matter of fact

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