Law of Contract: Free Consent

Coercion involves forcing someone to enter a contract by threatening them or using unlawful detention of property.

Consent is not freely given if obtained through coercion; the contract is voidable.

Threats to life/person, family members, or property can constitute coercion.

A legal remedy where a contract is set aside due to coercion.

In a rescinded contract, parties return what they've gained.

The agreement between parties in a contract is voluntary and not forced.

A contract that has no legal effect from the start, and cannot be enforced.

A contract that can be cancelled by one party, but is valid until cancelled.

Forcing someone to enter a contract through threats, violence, or confinement of a person or property.

Meeting of the minds; both parties agree on the same terms and understanding of the contract.

All agreements are contracts if made by free consent to competent parties.

Two or more persons consent when they agree on the same thing in the same sense.

If a contract lacks free consent, it can be either void or voidable, making it unfair to hold a party responsible.

Coercion in contracts involves forcing someone to agree to a contract through threats, violence, or unlawful detention of their property. This means their consent isn't freely given.

There are two types: 1) Threats of an act forbidden by the Penal Code, like assault or robbery. 2) Unlawful detention of property or threats to detain it, harming the person affected.

Coercion can involve threats against the person being coerced, their family members, or their property.

If a contract is entered into due to coercion, the innocent party can choose to void the contract. This means they can cancel the agreement and it will be as if it never happened.

If a contract is rescinded due to coercion, the innocent party can seek remedies. These include 1) Rescission: Setting aside the contract. 2) Restitution: Restoring any benefits gained from the contract. 3) Compensation: Seeking damages for losses incurred due to the contract.

Free consent is the basis of a valid contract. It means both parties willingly agree to the contract terms without any pressure or coercion. This ensures a fair and balanced agreement.

'Consensus ad idem' means 'meeting of the minds'. Both parties must have the same understanding of the contract's subject matter and terms.

Section 10 states that all agreements are considered contracts if they are made with free consent from parties who are capable of contracting.

A contract without free consent is either void (completely invalid) or voidable (one party can cancel it). It's unfair to hold someone responsible for a contract they didn't truly agree to.

Examples include threats to life, kidnapping, assault, extortion, or unlawful detention of property. These actions aim to force someone into a contract against their will.

A void contract is invalid from the beginning. It has no legal effect and cannot be enforced. It's as if the contract never existed.

A voidable contract is valid until it is repudiated (cancelled) by the party who was coerced into the agreement. The innocent party has the option to end the contract.