Free Consent

According to Section 10(1) of the Contract Act, what are the basic elements required for an agreement to be a contract?

• Offer, acceptance, consideration

• Free consent, offer, acceptance

• Free consent, lawful consideration, lawful object

• Competent parties, consideration, lawful object

What is the definition of coercion as per Section 15 of the Contract Act?

• The active concealment of a fact by one having knowledge or belief of the fact

• The suggestion as to a fact of that which is not true by one who does not believe it to be true

• The committing or threatening to commit any act forbidden by the Penal Code to cause a person to enter into an agreement

• Any other act fitted to deceive

Under what circumstances is a contract voidable as per Section 19 of the Contract Act?

• If consent to the agreement was caused by coercion, fraud, or misrepresentation

• If consent to the agreement was caused by mistake of fact essential to the agreement

• If consent to the agreement was caused by undue influence

• If consent to the agreement was caused by mistake of law

Fiona signs a contract to sell her antique collection gifted to her by her grandmother to Gary, Fiona was told by her grandmother that the items are genuine. She was confident in telling Gary that the items are genuine antiques. Believing Fiona's statement, Gary was persuaded to buy the antiques. Gary brought the items to a pawn shop to be valued but the items were found to be replicas. What is the legal status of the contract?

• The contract is valid because Gary is unaware of Fiona's mistake.

• The contract is unenforceable because it involves a mistake of fact.

• The contract is void because it involves innocent misrepresentation

• The contract is voidable due to Fiona's innocent misrepresentation.

According to Section 17 of the Contract Act, what does NOT include fraud?

• The active concealment of a fact by one having knowledge or belief of the fact

• The suggestion as to a fact of that which is not true by one who does not believe it to be true

• A promise made with intention of performing it

• Any other act fitted to deceive

Consent obtained through misrepresentation is always void.

• True

• False

What is the effect of a contract tainted by misrepresentation or by silence, fraudulent within the meaning of section 17?

• The contract is voidable at the option of the party who committed the misrepresentation or silence

• The contract is valid and enforceable by law

• The contract becomes void and unenforceable by law

• The contract is voidable at the option of the party whose consent was so caused

Charlie, a car salesman, intentionally provides false information about the mileage of a used car to convince a buyer to make the purchase. What is the legal status of the contract?

• The contract is valid because salespeople are allowed to exaggerate.

• The contract is voidable at the option of the buyer due to fraudulent misrepresentation.

• The contract is void because it involves intentional silence.

• The contract is unenforceable because it is a sales transaction.

What is the exception to a fraud or misrepresentation which did not cause the consent to a contract of the party on whom the fraud was practiced?

• The fraud or misrepresentation makes the contract valid and enforceable by law

• The contract becomes void and unenforceable by law

• The fraud or misrepresentation renders the contract voidable at the option of the party on whom it was practiced

• The contract is not voidable if the party had the means of discovering the truth with ordinary diligence

Coercion is only considered if it involves physical harm or threat.

• True

• False