Preface
Coercion in a contract refers to the use of force, threats, or undue influence to compel someone into entering or modifying a contractual agreement against their free will. It undermines the voluntary nature of contracts and renders them legally unenforceable.
Relevant Provisions
Sections 15, and 19 of the Contract Act, of 1872 deal with coercion.
Definition of Coercion
Section 15 of the Contract Act 1872 defines Coercion as follows;
Coercion is the committing or threatening to commit, any act forbidden by the Pakistan Penal Code or the unlawful detaining, or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement.
Ingredients of Coercion
The ingredients of coercion are the following.
1. Committing or threatening to commit
If a person commits or threatens to commit any act, that is forbidden by the Pakistan Penal Code, in order to compel the other party to enter into a contract, Such a contract is made under coercion and this type of contract is not valid (voidable but not void) in the eyes of law.
Example: A threatens to cause physical harm to B if he does not sign the contract and B signed it. This contract is made under coercion and is voidable.
2. Unlawful detaining or threatening to detain
If a person unlawfully detains or threatens to detain the property of another person in order to compel him to enter into a contract, the contract would be voidable at the option of the aggrieved party.
Legal Effects of Coercion on Contract
When the consent to an agreement is caused by coercion, the agreement becomes a contract voidable at the option of the aggrieved party.
Onus of proof
The onus of proof that coercion is used lies on the party wanting to set aside that contract on the ground.
Final Note
The coercion has an effect on the nature of the contract in such a way that it turns the contract into a voidable contract at the option of the aggrieved party.
FREQUENTLY ASKED QUESTIONS
Define coercion and undue influence and distinguish between the two.
(2018-A, 2017-S, 2016-A, 2015-s, 2014-S, 2012-S)
REFERENCES
- The Contract Act, 1872
- N-Series by M.A. Chaudhary
- Law of Contract by Avtar Singh
