One is considered to have used coercion and the consent is not free when they use force or threat to persuade the other party to enter into a contract.
Coercion is defined as "committing or threatening to commit any act prohibited by the Indian Penal Code, or unlawfully detaining or threatening to detain any property, or to the prejudice of any person whatsoever; with the intention of causing any person to enter into an agreement," according to Section 15 of the Indian Contract Act.
As an illustration, Akshay demanded that Dinesh sign a specific contract or else his son would be stabbed. Dinesh's signature on the contract makes it appear as though coercion was used to enter into it. According to the injured party's discretion, such contracts are voidable.
Coercion's Effect
When coercion is used to get consent to an agreement, that party has the opportunity to revoke the agreement (Sec. 19).
A person who has received money or anything else inadvertently or under duress is required to reimburse or return it, according to Section 72.
At the discretion of the party whose consent was coerced, a contract obtained through coercion is voidable (Sec.19). This means that the party who feels cheated may either exercise the right of rescission or the option to affirm the transaction. According to section 64, if the aggrieved party decides to void the contract, he is required to return whatever benefits he gained from it to the other party.
The party wishing to annul the contract on the basis of coercion has the burden of proving that compulsion was utilised.
