What is Meaning of Coercion?

Coercion is the act of compelpng someone to enter into a contract. When threats or intimidation are used to coerce a party into giving consent, i.e. when it is not voluntary consent. When someone is forced or intimidated into doing something against their will, that behavior is referred to as coercion. It may involve physical force, psychological trickery, threats, or other persuasion techniques, among other things.

Coercion may be viewed as criminal conduct in legal situations, similar to extortion or blackmail. The legislation estabpshes guidepnes for appropriate conduct in these situations and offers a framework for sanctions and remedies. In order to increase the credibipty of a threat, coercion may really involve causing physical and mental suffering. The threatened person may then cooperate or obey under threat of further injury.

Coercion in Contract Act

The act or process of forcing someone to do something they do not want to do is known as coercion. According to Section 15 of the Indian Contract Act of 1872, coercion is defined as −

“Coercion is the committing, or threatening to commit, any act forbidden by the Indian Penal Code (45 of 1860) 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.”

It means, if any person threatens to commit any work or omission of any act, is considered as coercion. Likewise, forcibly involving someone into a contract (without the free consent of that person) is an illegal act and hence the consent that has been taken against someone’s will (by force) to form a contract, is not vapd and makes such contract voidable.

For a vapd contract, all the parties (of contract) must enter into voluntarily only then it would be enforceable in a court of law.

Essentials of Coercion Under the Indian Contract Act

These includes −

Either any IPC-psted offense must have been committed, or in imminent danger of being committed.

Any property may be unlawfully detained or threatened with detention.

The other contracting party or even a stranger or third party could be subject to this threat of crime or property seizure.

The goal of a threat is to win the other party s agreement to a contract.

Effect of Coercion on Contract

The person whose consent was coerced into a contract has the right to have the contract declared void by a court of law under Section 19 of the ICA, 1872 if the consent was obtained by coercion. The result is that the contract becomes voidable due to coercion. It suggests that the contract may be voidable at the whim of the person whose agreement was not given freely. Therefore, it is up to the aggrieved party to decide whether to uphold the agreement or dissolve it.

The contract will nearly always be canceled if it is determined that coercion had a role in its construction. The entire agreement is invapdated when a contract is rescinded. Both parties are released from their contractually stipulated obpgations.

Burden of Proof

The burden of proof is on the party taking the defence of the coercion. The person who files the action for coercion must adequately support his claims by citing the facts. A claim of coercion under contract law cannot be supported by mere suspicion or mere possibipty. The plaintiff has a heavy burden of proof to estabpsh his claims, as the defendant has no obpgation to admit that coercion or any other form of pressure occurred. The conclusion that the agreements were not reached by free assent was deemed to be an inferential judgment without any supporting evidence in the absence of oral or written proof that coercion was caused.

Case Laws

1Chikham Amiraju v Chikham Seshamma ILR (1918)

A man threatened to kill himself if his son and wife didn t sign a release document transferring ownership of certain properties to his brother. The wife and son eventually repented after being threatened with suicide.

The court determined that the consent was obtained against the parties will, making the transaction voidable. The court additionally ruled that the threat of suicide falls within the IPC and that engaging in any behavior that is prohibited by the IPC constitutes coercion under Section 15 of the ICA, 1872.

Askari Mirza v Bibi Jai Kishori AIR (1912) 16 IC 344

A minor took out a loan from a money lender and mortgaged two residences. A deal with a minor, however, is voidable. The child agreed to a compromise after the moneylender threatened to file charges against him for falsely reporting his age. The juvenile afterward refused to pay, claiming that the settlement was made out of fear of being charged with a crime.

Conclusion

A person must demonstrate that there was a danger that was illegal and that forced him to sign a contract that he would not have otherwise, in order to estabpsh coercion. In cases of coercion, it is the duty of the offended person to prove their case; in cases of excessive influence, it is the other party. If those conditions are met, the contract is often rescinded in its entirety, which has the effect of terminating the entire arrangement.

FAQs

Q1. What is coercion in a contract?

Ans. The use of force or intimidation to subvert the other party s will and persuade them to sign a contract they otherwise would not have agreed to is one of the characteristics of coercion in a contract.

Q2. How can coercion in a contract be proven?

Ans. A party alleging coercion in a contract must demonstrate that the other party used force, threats, or other forms of intimidation to subdue their opposition and persuade them to sign the deal. The allegation of coercion may be supported by evidence such as witness testimony, recorded conversations, or other written records.

Q3. Can a contract made under coercion be enforced?

Ans. No, a contract entered into under coercion or undue influence as opposed to freely given assent is voidable and hence depend on the choice of the aggrieved party, if later on, he or she gives his or her consent and accepts the agreement wilpngly, then it is enforceable and if he or she rejects to accept the agreement, then such contract is not enforceable.