Section 15 of the Contract Act defines ‘Coercion’ as follows:
“Coercion is the committing or threatening to commit, any act forbidden, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement.”
The Explanation to the Section further adds that “it is immaterial whether the Indian Penal Code is or is not in force in the place where the coercion is employed,”
Illustrations
(i) A Madrasi gentleman died leaving a young widow. The relatives of the deceased threatened the widow to adopt a boy otherwise they would not allow her to remove the dead body of her husband for cremation. The widow adopted the boy and subsequently applied for cancellation of the adoption. If was held that her consent was not free but induced by coercion, as any person who obstructed a dead body from being removed for cremation, would be guilty of an offence under Section 297 of the I.P.C. The adoption was set aside (Ranganayakamma vs Alwar Setti).
(ii) L threatens to shoot M. if he does not let out his house to him . M agrees to let out his house to L. The consent of M has been induced by coercion.
(iii) An agent refused to hand over the account books of the business to the new agent sent in his place, unless the principal released him from all liabilities. The principal had to give a release deed as demanded. Held, that the release deed was voidable at the instance of the Principal who was made to execute the release deed under coercion ( Muthia vs Karuppan).
(iv) The Government gave a threat of attachment against the property of A, for the recovery of a fine due from B, the son of A. A, paid the fine. Held, The payment of fine was induced by coercion and therefore A was entitled to recover the money paid to remove wrongful attachment (Bansraj vs The Secy of State).
The act constituting coercion, may be directed at any person, and not necessarily at the other party to the agreement. Likewise it may proceed even from a stranger to the contract.
Illustrations
(a) A. threatens to shoot B, a friend of C if C does not let out his house to him. C agrees to do so. The agreement has been brought about by coercion.
(b) A. threatens to shoot B if he does not let out his house to C. B agrees to let out his house to C. B’s consent has been caused by coercion.
3. It does not matter whether the Indian Penal Code is or is not in force in the place where the coercion is employed . If the suit is filed in India, the above provision ( i.e. Sec. 15) will apply.
Illustration (Appended to Sec. 15) A, on board an English ship on the high seas, causes B to enter into an-agreement by’ an act amounting to criminal’ intimidation under the Indian Penal Code. A, afterwards sues B for breach of con-tract, at Calcutta. A, has employed coercion, if though his act not an offence by the law of England and although Section 506 of the Indian Penal Code was not in force, at the time or place where, the act, was done.
What is Doctrine of Frustration?
Certificate of Origin
What is Doctrine of Frustration?
Certificate of Origin
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What is Coercion?
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