Free Consent - What does it mean?

Last Updated On -16 Apr 2025

The concept of free consent holds a prominent place in contracts and legal agreements. The basis of a valid and enforceable agreement is free of consent. This eliminates the chances of contracts being signed on the basis of false information or a threat. The law of free consent prevents chances of misled or unfair practices. It ensures mutual consent of all the parties entering any agreement. In simpler terms, a contract cannot be considered a contract unless all the parties have free consent.

What is the meaning of Free Consent?

Section 13 of the Indian Contract Act, 1872 states that two or more people are said to consent when they agree on the same thing in the same sense. Consent is the mutual understanding between people over the terms and conditions of a contract. However, it is not enough for the consent to only “exist”, it should be free and not caused by coercion, influence, fraud, misrepresentation, or mistake.

When the consent is obtained under fraud or misinterpreted information, the contract is nit valid in the eyes of laws. The whole thing is considered void or voidable at the option of the party whose consent was jeopardised. This offers protection to the individuals from any mishap or manipulation before signing any contract or entering a partnership deed.

What are the elements that affect the Free Consent?

The Indian Contract Act, lays down the foundation to protect the individuals and business from unfair practices. After recognizing the various elements that have the potential to impact free consent, we understand that the free consent law eliminates all the mishap chances to safeguard the agreements and freedom of choice.

The elements that affect the free consent are:

1. Coercion (Section 15)

Coercion is the enforcement of any party to enter an agreement by using threats or physical harm. This includes unlaw detaining of property by threatening. When a person signs a contract out of fear fro their life, property, or loved ones, the consent is considered to be not free. These type of contracts are voidable at the option of a coerced party.

For example, when X forces Y to sell his property by threatening to harm his family, Y’s consent is taken through coercion.

2. Undue Influence (Section 16)

The situation when one party uses the dominant position over another person to obtain an unfair advantage while signing a contract. This type of situation is usually between parties with trust and authority among them. When a dominant party manipulates the submissive or weaker party to agree to unfair terms, it results in undue influence.

For example, when an old man is relying on the caregiver, and the caregiver signs on the property under emotional pressure.

3. Fraud (Section 17)

When one of the parties intentionally deceives the other party into signing a contract. This can be done after withholding a vital piece of information, non-disclosure of facts, false presentation or hiding the truth, the given consent becomes flawed.

For example, when a person sells a car to another person, without informing about the faulty engine it is considered as fraud.

4. Misrepresentation (Section 18)

When one party presents a false statement in an innocent manner without explaining and presenting all the facts then it is a misrepresentation of the statements. The party may make claims withholding facts which may look true to the other party giving the consent, the contract in that case is voidable.

For example, when a person tells that a machine can produce 200 units in a week based on the seller’s demands. If this is incorrect then this is a misrepresentation.

5. Mistake (Section 20-22)

When one or both the parties misunderstand a fact. This can be bilateral where both the parties are mistaken, or unilateral where one party is mistaken. When the mistake is bilateral about a significant fact, it makes the contract void, whereas if the mistake is unilateral, the mistake will not create such an effect.

For example, when two people enter a contract for the sale of a property, thinking it is currently available. The property has already been sold at the time of the agreement. Now, here both the parties are unaware of the situation, the contract is rendered void due to bilateral mistake.