Coercion- Section 15 of the Indian Contract Act, 1872

According to Section 15 of the Indian Contract Act, 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, with the intention of causing any person to enter into an agreement.

In simpler terms, coercion refers to using force or threats (either physical or by unlawful means) to compel someone to enter into a contract. If a person is forced into making a contract through coercion, the agreement is considered voidable, meaning the coerced party has the option to either enforce the contract or void it.

The key elements of coercion under this section include:

-Committing or threatening to commit an act forbidden by the Indian Penal Code (for example, threatening to cause bodily harm or illegal confinement).

–Unlawful detaining or threatening to detain property (for instance, unlawfully holding someone’s property as leverage).

-The act must be done with the intention of forcing someone to enter into a contract.

Examples of coercion

1-Threatening Physical Harm

A person threatens another with physical harm if they do not sign a contract selling their land. Fearing for their safety, the victim signs the contract.

– This is an example of coercion because the contract was signed under the threat of physical violence, which is forbidden by the Indian Penal Code.

2-Unlawful Detention of Property

A moneylender illegally detains a farmer’s cattle and refuses to return them unless the farmer agrees to sell his land at a very low price. The farmer, needing his cattle for livelihood, signs the agreement.

– In this case, the unlawful detention of the farmer’s property (cattle) constitutes coercion.

3-Threat to File a False Criminal Case

A businessperson threatens to file a false criminal case against a supplier unless the supplier agrees to supply goods at a below-market price. The supplier, fearing legal trouble, reluctantly agrees to the terms.

– Here, the threat of an unlawful act (filing a false case) amounts to coercion.

4-Threat to Commit Suicide

A man threatens to commit suicide if his wife doesn’t transfer her property to him. Fearing for his life, the wife agrees to the transfer.

– A threat to commit suicide is considered coercion because it is an act forbidden by the Indian Penal Code.

5-Forced Agreement Under Duress

A person kidnaps someone’s family member and demands that they sign a contract transferring a valuable property in exchange for the family member’s release. The person, under duress, signs the contract.

– The use of threats and unlawful confinement to compel the person to enter into a contract is coercion.

In all these cases, the contracts are entered into due to threats or illegal actions, which are forbidden by law. Such contracts are voidable at the option of the party who was coerced into the agreement.