Business Law

Assignment

Q1) Define Free consent.

Ans) Free consent is one of the essentials of a valid contract. According to Section 14, consent is
free if it is not obtained by coercion, undue influence, fraud, misrepresentation or mistake.

As stated, a free consent is only obtained when the offeree is free of any influence or force and
willingly agrees to the proposal, promise or contract offered by the offeror.

Q2) Who is sound person and where it is defined under the law?

Ans) A person is said to be of sound mind if he is able to comprehend and perform rational
judgment that piques his interest. A person, who is usually of unsound mind but occasionally of
sound mind, can form a contract during the period he was of sound mind. Whereas, a person who
is usually of sound mind but occasionally of unsound mind may not be able to form a contract in
the state of being unsound. The law is defined under Section 12 of Contract Act.

Q3) Differentiate undue influence and coercion in your own words.

Ans) The difference between coercion and undue influence is such that, in the case of undue
influence a person is being persuaded through improper means by another person who holds a
dominating or authoritative position in the relationship.

On the other hand, in the case of coercion, a person is being forced into an agreement through the
means of violence and physical abuse. He is being threatened to form an agreement.