Coercion means forcing a person to enter into a contract. Under Sec. 15 of the Indian Contract Act, 1872, any of the following act will amount to coercion:
- Committing an act forbidden by the IPC
- Threatening to commit an act forbidden by IPC
- Unlawful detaining of property of a person
- Threatening to detain the property of any person wrongfully
Thus, it includes fear, physical compulsion and menace to goods. It is making a person act against his or her free will and involuntarily. Threats, intimidation or some force or the other go on to constitute as coercion.
Actual infliction of physical or psychological harm, which further enhance the credibility of a threat, both go on to constitute a part of coercion. It involves the purposeful manipulation and transformation of rules which go on to affect a person’s normal behaviour. It may sometimes include subtle influences as that of seduction, charming, sweet talking or begging.
Any party to the contract may exercise coercion against the other party. It may even proceed from a stranger to the contract. It may, similarly be employed against any person including a stranger.
But it is necessary that all acts of coercion must be with an intention of causing the other party to enter into an agreement. It is not necessary that IPC must be applicable at the place where coercion is employed. But an act which is not punishable under IPC will not amount to coercion.
Eg. (1) A threatens to shoot B if B doesn’t lend him Rs. 800 and B lends the amount. This threat by A to B amounts to coercion.
(2) X threatens to shoot Y’s son, I Z doesn’t let out his house to W who is X’s brother. Z agrees to let out his house to W. The consent of Z has been introduced by coercion.
Consequence of Coercion:
Sec 14: When an agreement is made due to coercion, the consent is not free. Thus, under Section 19 of the Indian Contract Act, 1872, the contract is voidable at the option of the party whose consent is not free.
Case Law: Amiraju v. Seshamma
Facts: A Hindu husband by threatening the wife and son of committing a suicide and thereby induced his wife and son to execute a sale deed in favour of his brother in respect of certain properties. Husband had many vices. Later on wife and son challenge the validity of deed on ground that the consent was caused by coercion and therefore consent was not free. Thus, consent and the contract is voidable at the option of the wife and the sun.
Held: It was held that the defendant husband threatened to commit suicide which is forbidden by the Indian Penal Code, and therefore the sale deed was not valid.
Conclusion:
Thus, coercion forms a basis of a void contract under the Indian Contract Act, 1872.
By Maahi Mayuri
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