Section 14 Indian Contract Act 1872 - Free Consent Defined

Section 14 of the Indian Contract Act, 1872 defines free consent. Free consent is an important requirement for a valid contract because the agreement of the parties must result from their independent and voluntary decision rather than coercion, undue influence, fraud, misrepresentation or a legally relevant mistake.

The concept under Section 14 should be read together with Section 13, which defines consent, and the provisions dealing with the circumstances that may prevent consent from being free.

Section 14 - Free Consent Defined

14. "Free consent" defined.

Consent is said to be free when it is not caused by -

coercion, as defined in section 15; or
undue influence, as defined in section 16; or
fraud, as defined in section 17; or
misrepresentation, as defined in section 18; or
mistake, subject to the provisions of sections 20, 21 and 22.

Consent is said to be so caused when it would not have been given but for the existence of such coercion, undue influence, fraud, misrepresentation or mistake.

What Is Free Consent Under Section 14?

In simple terms, consent is free when a person agrees to a contract without the agreement being produced by any of the five factors specified in Section 14.

The provision therefore requires more than the mere existence of consent. There must first be consent within the meaning of Section 13, and that consent must also be free from the circumstances identified in Section 14.

Key principle: Section 14 applies a causation test. The specified factor must have caused the consent in the sense that the consent would not have been given but for the existence of that factor.

Factors That Make Consent Not Free

1. Coercion - Section 15
Section 15 defines coercion for the purposes of the Indian Contract Act. Where consent is caused by coercion, it is not free consent under Section 14.
2. Undue Influence - Section 16
Section 16 deals with undue influence, including circumstances in which one party is in a position to dominate the will of another and uses that position to obtain an unfair advantage.
3. Fraud - Section 17
Section 17 defines fraud and specifies conduct that may amount to fraud in relation to a contract.
4. Misrepresentation - Section 18
Section 18 defines misrepresentation. If consent is caused by a misrepresentation falling within the provision, the consent is not free for the purposes of Section 14.
5. Mistake - Sections 20, 21 and 22
Section 14 expressly makes mistake subject to Sections 20, 21 and 22. Section 20 deals with an agreement where both parties are under a mistake as to a matter of fact essential to the agreement.

Difference Between Consent and Free Consent

Consent and free consent are related but distinct concepts under the Indian Contract Act, 1872.

Under Section 13, persons consent when they agree upon the same thing in the same sense. Section 14 then determines whether that consent is free.

Accordingly, the existence of consent does not by itself establish that the consent was freely given. Consent may exist but may have been caused by coercion, undue influence, fraud or misrepresentation. The Act separately provides for the legal consequences of such circumstances.

Effect of Absence of Free Consent

The legal consequence depends upon the particular factor affecting consent. For example, Section 19 deals with the voidability of agreements where consent was caused by coercion, fraud or misrepresentation.

Section 19A deals specifically with the power to set aside a contract induced by undue influence.

Mistake is governed separately by Sections 20, 21 and 22. The legal effect therefore should be determined by identifying the factor affecting consent and applying the corresponding provision of the Act.

Why Section 14 Is Important

Section 10 of the Indian Contract Act provides, among other requirements, that agreements become contracts when made by the free consent of parties competent to contract, for lawful consideration and with a lawful object, provided they are not expressly declared void.

Section 14 is therefore central to determining whether the consent necessary for an enforceable contractual relationship has been freely given.

Related Provisions of the Indian Contract Act

For a complete understanding of free consent, Section 14 should be read with the following provisions:

Legal note: The application of Section 14 depends upon the facts and circumstances of the particular transaction. The provision should be read with the relevant connected sections of the Indian Contract Act, 1872.