The Indian Contract Act

A person is considered to be of sound mind for the purpose of contracting if, at the time of making the contract, they are capable of understanding it and forming a rational judgment regarding its effects upon their interests.

Free consent refers to a situation where the parties involved in a contract have consented without any coercion, undue influence, fraud, misrepresentation, or mistake. It is significant as contracts made with free consent are considered valid and enforceable, whereas those made without free consent may be voidable.

This concept deals with the communication, acceptance, and revocation of proposals in the formation of contracts. It includes the rules and procedures for making and accepting proposals, as well as the methods for revoking them.

<p>Coercion involves the use of force or threats to make a person enter into a contract, while undue influence refers to the use of a position of trust or authority to exploit a person's vulnerability and obtain their consent to a contract. Both undermine free consent, but coercion involves explicit threats or force, whereas undue influence involves taking advantage of a person's trust or dependence.</p> Signup and view all the answers

<p>Voidable contracts are those that are initially valid and enforceable but are susceptible to being voided at the option of one of the parties due to factors such as coercion, undue influence, fraud, misrepresentation, or mistake. For example, a contract entered into as a result of fraudulent misrepresentation may be considered voidable by the party who was misled.</p> Signup and view all the answers

<p>Consent is defined as an essential element in the formation of a contract under the Indian Contract Act, 1872. It refers to an agreement between the parties, and it must be free from coercion, undue influence, fraud, or misrepresentation. Without valid consent, a contract may be considered voidable or void.</p> Signup and view all the answers

<p>In the Indian Contract Act, 1872, voidable contracts are those which are enforceable by law at the option of one or more parties, but not at the option of the other party or parties. On the other hand, void agreements are those which are not enforceable by law, and are considered as having never been entered into.</p> Signup and view all the answers

<p>The Indian Contract Act, 1872 specifies that any person who is of the age of majority according to the law to which he is subject, and who is of sound mind, is competent to contract. Soundness of mind refers to the ability to understand the terms of the contract and its implications.</p> Signup and view all the answers

<p>Coercion is defined as the committing, or threatening to commit, any act forbidden by the Indian Penal Code, or the unlawful detaining or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement. Contracts entered into under coercion are voidable at the option of the party subjected to coercion.</p> Signup and view all the answers

<p>Acceptance by performing conditions, or receiving consideration, refers to a mode of acceptance where the offeree undertakes to fulfill the terms of the offer by performing the conditions specified in it, or by receiving the consideration offered. This type of acceptance results in the formation of a valid contract.</p> Signup and view all the answers