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CA Foundation Exam June 2023 » CA Foundation Study Material » Business Laws » Meaning of Free Consent

Meaning of Free Consent

This article comprises the vital facts of Free Consent, ranging from the definition of Free Consent, its importance of free consent, Elements of Free Consent, common mistakes to the violations.

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To understand the meaning of Free Consent clearly, it is important to know the meaning of Consent.  Consent is an agreement formed between two or more parties mutually on the same what they desired or wanted to convey with one another. An agreement can be written or an oral agreement. The written agreement is preferred as it serves as a piece of evidence even in the Court. It helps with smooth functioning as quarrels and disputes are reduced to a greater extent because if one party is willing to do something, the other party will comply with the agreement.

What is Free Consent?

 As stated in Section  13 of the Indian Contract Act, 1932, Free Consent means when both the parties agree or are ready to do a thing in the same sense or harmony. An agreement is incomplete without Free Consent as both the parties should commit to a single thing, and it shows the mutual trust that both the parties have in each other.

Let’s take a daily life example of Free Consent for a deeper and Clear Understanding.

Suppose, A and B are good friends. A has many sports bikes, but he is moving to London, so he is looking for a buyer for his red and blue bike and B, on the other hand, is fond of sporty Bikes. So A asks B if he wishes to buy his blue bike for 10,00,000 rs, and B says he loves the bike, but it’s a little expensive for him, so he will pay in instalments, and he will be able to pay 8,00,000 rs for the bike and A accepts his counter offer wholeheartedly, and there is nobody pressuring A to sell his bike in instalments or at a lesser price, and nobody is pressuring B to buy A’ s bike. So A selling his bike to B is a pure example of Free Consent as both are agreeing with respect to the same blue bike which they have in mind and without any forces such as coercion, undue Influence etc. 

What is the Importance of Free Consent?

Free consent serves as an asset in the decisions of both parties as Free Consent emerges from the mutual trust and cooperation of both companies. This gives rise to smooth functioning as quarrels and disputes are reduced to a greater extent because if one party is willing to do something, the other party will co-operate.

Elements of the Free Consent

 For consent to be considered Free Consent, it should meet certain requirements as given below :

• The contract should not be formed under Someone’s pressure or undue influence.

• The contract should be a result of the agreement of both the companies. There should be consent and willingness to work together in both   companies.

• The contract should be free of any fraud.

• There should be mutual trust in both parties.

• All the points in the contract should be clearly stated to avoid misconceptions.

What are the factors that contribute to the violation of Free Consent?

Some common factors that contribute to the violation of Free Consent are given below:

• Coercion: When one party compels or forces the other party to enter into a contract with it by means of threatening or blackmailing. So there exists no free will, and hence it violates Free Consent.

• Mistake or Misrepresentations: When there is a lack of communication between two parties, or some other party gets involved in the decision-making, then it gives birth to quarrels and misconceptions. It violates the rule of Free Consent as there is no room for quarrels or fights. It promotes peace.

• Undue Influence: When the party with higher authority dominates the other party and decides as per what the party with higher position wants and suppresses the desires of the other party, then it violates the  Free Consent as both the parties have equal rights in decision making. It’s mostly seen in husband and wife or tenants and landlords.

• Fraud: When one party cheats another party or hides or is dishonest or disloyal or then is no complete transparency between both the parties or if one of the parties fails to commit to its promises, then it’s a case of Fraud.

Conclusion

Free consent is the result of the mutual trust of both the parties in each other. Free Consent is when both parties agree on the same thing in the same way. Both the parties should be in agreement for free Consent. We learned everything about from the definition of Free Consent, the importance of free consent, Elements of Free Consent, common mistakes that are committed in Free Consent to the violation of Free Consent in this article.

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