Contract Law: Free Consent and Void Agreements

Free Consent

• Free consent is an essential element of a valid contract (Section 14)
• Consent is said to be free when it is not caused by:
  • Coercion (Section 15)
  • Undue influence (Section 16)
  • Fraud (Section 17)
  • Misrepresentation (Section 18)
  • Mistake (Section 20)
• Consent is not free when it is obtained by unfair means or when one party takes advantage of the other's vulnerability

Void Agreements

• An agreement not enforceable by law is said to be void (Section 2(g))
• Void agreements include:
  • Agreements in restraint of marriage (Section 26)
  • Agreements in restraint of trade (Section 27)
  • Agreements by way of wager (Section 30)
  • Agreements contingent on impossible events (Section 32)
  • Agreements contingent on uncertain events (Section 33)
• Void agreements are null and void from the very beginning

Performance Of Contracts

• Contracts can be performed in different ways, including:
  • Actual performance: When one party performs its obligations as agreed upon
  • Tender of performance: When one party offers to perform its obligations as agreed upon
  • Substitute performance: When one party performs its obligations in a different way than agreed upon
• Time and place of performance are crucial in determining the validity of a contract
• Performance of a contract can be conditional or unconditional

Breach Of Contracts

• Breach of contract occurs when one party fails to perform its obligations as agreed upon
• Breach can be:
  • Actual breach: When one party actually fails to perform its obligations
  • Anticipatory breach: When one party indicates its intention not to perform its obligations
• Consequences of breach of contract include:
  • Damages: Compensation for loss suffered by the injured party
  • Specific performance: Court orders the defaulting party to perform its obligations
  • Rescission: Contract is cancelled and parties are restored to their original positions

Formation Of Contracts

• A contract is formed when there is:
  • An offer (Section 2(a))
  • An acceptance (Section 2(b))
  • Consideration (Section 2(d))
  • Intention to create legal relations
• Types of contracts include:
  • Express contracts: Contracts with clear and direct terms
  • Implied contracts: Contracts with terms inferred from the circumstances
  • Quasi-contracts: Contracts implied by law, despite the absence of an agreement

Free Consent

• Free consent is a crucial element of a valid contract, as stated in Section 14
• Consent is not free when it is obtained by unfair means or when one party takes advantage of the other's vulnerability
• There are five ways to vitiate consent, including:
  • Coercion (Section 15)
  • Undue influence (Section 16)
  • Fraud (Section 17)
  • Misrepresentation (Section 18)
  • Mistake (Section 20)

Void Agreements

• An agreement not enforceable by law is considered void (Section 2(g))
• Void agreements are null and void from the very beginning
• Examples of void agreements include:
  • Agreements in restraint of marriage (Section 26)
  • Agreements in restraint of trade (Section 27)
  • Agreements by way of wager (Section 30)
  • Agreements contingent on impossible events (Section 32)
  • Agreements contingent on uncertain events (Section 33)

Performance Of Contracts

• Contracts can be performed in different ways, including actual performance, tender of performance, and substitute performance
• Time and place of performance are crucial in determining the validity of a contract
• Performance of a contract can be conditional or unconditional
• Actual performance occurs when one party performs its obligations as agreed upon
• Tender of performance occurs when one party offers to perform its obligations as agreed upon
• Substitute performance occurs when one party performs its obligations in a different way than agreed upon

Breach Of Contracts

• Breach of contract occurs when one party fails to perform its obligations as agreed upon
• Breach can be actual or anticipatory
• Actual breach occurs when one party actually fails to perform its obligations
• Anticipatory breach occurs when one party indicates its intention not to perform its obligations
• Consequences of breach of contract include:
  • Damages: Compensation for loss suffered by the injured party
  • Specific performance: Court orders the defaulting party to perform its obligations
  • Rescission: Contract is cancelled and parties are restored to their original positions

Formation Of Contracts

• A contract is formed when there is an offer, an acceptance, consideration, and intention to create legal relations
• Types of contracts include:
  • Express contracts: Contracts with clear and direct terms
  • Implied contracts: Contracts with terms inferred from the circumstances
  • Quasi-contracts: Contracts implied by law, despite the absence of an agreement
• An offer is a proposal made by one party to another, as stated in Section 2(a)
• An acceptance is a person's consent to the terms of an offer, as stated in Section 2(b)
• Consideration is something of value given by one party to another in exchange for a promise, as stated in Section 2(d)

Free consent in contracts and what makes them void. Learn about coercion, undue influence, fraud, misrepresentation, and mistake. Understand what makes an agreement unenforceable by law.