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Coercion
When a person commits or threatens to commit an act which is forbidden under
the Indian Penal Code, or detains an object unlawfully or threatens to do so with
the intention to force a person to enter into a contract, then it is said to be
coercion.
Coercion means using force to compel a person to enter into a contract. So force or threats are
used to obtain the consent of the party under coercion, i.e it is not free consent. Section 15 of the
Act describes coercion as
● committing or threatening to commit any act forbidden by the law in the IPC
● unlawfully detaining or threatening to detain any property with the intention of
causing any person to enter into a contract
Illustrations :
1 “A” cause “B” to enter into an agreement which is forbidden under the Indian
Penal Code. “A” had done the act when an English ship was on the high seas.
The “A” sues “B” for breach of contract in Mumbai.
2 A threatens to hurt B if he does not sell his house to A for 5 lakh rupees. Here even if B sells the
house to A, it will not be a valid contract since B’s consent was obtained by coercion.
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This agreement was considered to be void as “A” had employed coercion,
though Indian Penal Code was not in force at the place where the act was
done.[ illustration 1]
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Effect of coercion
When the agreement made is found to be made out of coercion, then the
contract would be rescinded or cancelled, due to which both parties are released
from their obligation to perform their duties as per the contract.
The burden of proving that the consent was obtained through Coercion shall be upon
the party who wants to set aside the contract on the plea of contract.
Examples of Effect of coercion
1 Anuj executes a transfer bond for a house under fear of assault it will be a contract
voidable at the option of anuj since the consent was obtained by the coercion.
2 a railway company refuses to deliver a certain goods to the consignee , exCept upon the
payment of an illegal Charge for Carriage . the Consignee pays the Ce rtain sum in order to
obtain the goods. he is entitled to reCo
ver so muCh of the Charge as way illegally exCe
ssive
Is a threat to commit suicide coercion?
Madras high court has held by a majority judgement that even a threat to
commit sucide is coercion even through it is not punishable in the indian
penal code
Example
A man by giving a threat to commit a sucide induces his wife and son to execute a deed in
favour of him in respect of certain property and they execute . held that the consent of the
wife and son has obtained through corceion.
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● No, a threat to commit suicide does not amount to coercion.
● In the case of Ammiraju v Seshamma,[2] it was seen that there was a
threat by the husband to commit suicide, and he demanded his wife to
release the property. It was seen that the wife was prejudiced and it
can’t be forbidden by law. So here the threat to commit suicide by the
husband amounts to coercion on the wife.
● But this Section15 of the Indian Contract Act can’t provide relief in this
matter in mere prejudice that a person is subjected to.
Case laws
Muthta vs muthu karuppa [1927] 50 mad 786
● An agent refuse to handover the accounts books of business to the new agent unless
The princi ple released him from all the liabilities . the principle had to release the deed as
demanded .
● Held the release deed was given under coercion and was at the option of the
principle.
Conclusion
In most legal systems , the use of physical specific coercion by private individuals is a criminal
offense in all cases not involving self defence and similar situations.
The picture is less simple for psychological specific coercion. Owing to the general difficulties in
finding clear evidence for it. In most systems psychological coercion is treated as a criminal
offense when it is aimed at extortion , as is typical as blackmail. It is also punished when it is
lead to undue influence defined as a master slave relationship.
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Bibliography
● Legal match
● Bare act 2020
● Indian contract act by RK bangia
● Law of contract by jyoti rattan
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