Page 52 - DMGT102_MERCANTILE_LAWS_I

Mercantile Laws-I Karan Arora, Lovely Professional University

Notes Unit 4: Free Consent

CONTENTS

Objectives
Introduction
4.1 Meaning of Consent
4.2 Meaning of Coercion (Ss. 15 and 72)
4.3 Meaning of Undue Influence (S. 16)

4.4 Meaning of Fraud [Ss.17 and 19]
4.5 Meaning of Misrepresentation (Ss. 18-19)
4.6 Meaning of ‘Mistake’ [Ss.20-21]
4.7 Meaning and Effect of ‘Unilateral Mistake’

4.8 Mistake of Law
4.9 Summary
4.10 Keywords
4.11 Self Assessment
4.12 Review Questions

4.13 Further Readings

Objectives

After studying this unit, you will be able to:
z Explain the meaning of consent
z Discuss coercion, undue influence and fraud

z Discuss misrepresentation

Introduction

As you all know that the law relating to contracts is contained in the Indian Contract Act, 1872.

For business executives, contract law is tremendously significant because it underlies or is related
to all major areas of law affecting business. In last unit you have studied about capacity of contact.
Anyone can enter into a contract; he must be competent to contract according to the law. The fl aw
in capacity may be due to minority, lunacy, idiocy, drunkenness, drug addiction or status. In this
unit you will study meaning of free consent and fraud.

4.1 Meaning of Consent

We have seen earlier that an offer by one party is accepted by the other party. The consent of the
offeree to the offer by the offeror is necessary. It is essential to the creation of a contract that both
parties agree to the same thing in the same sense. When two or more persons agree upon the
same thing in the same sense they are said to consent.

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