The Law of Contract - Voidable Contract – Coercion
The Law of Contract
Voidable Contract – Coercion
The word “contract” can be defined as a voluntary, deliberate, and legally binding agreement between two or more competent parties. Contracts are usually written but may be spoken or implied, and generally have to do with employment, sale or lease, or tenancy. A contractual relationship is evidenced by an offer, acceptance of the offer, intention to create legal relations, consideration, certainty and capacity. However, while all parties may expect a fair benefit from the contract or otherwise courts may set it aside as inequitable, it does not follow that each party will benefit to an equal extent. Existence of contractual-relationship does not necessarily mean the contract is enforceable, or that it is not void or voidable. Contracts are normally enforceable whether or not in a written form, although a written contract protects all parties to it. Some contracts such as for sale of real property, instalment plans, or insurance policies must be in writing to be legally binding and enforceable. Other contracts are assumed in, and enforced by, law whether or not the involved parties desired to enter into a contract.
Under the Law of Contracts, Voidable Contracts means a formal agreement between two parties that may be rendered unenforceable for a number of legal reasons. A voidable contract can be legally rejected by one party and is said to have a defect. If the party with the power to reject the contract chooses not to reject the contract despite the defect, the contract becomes valid and enforceable. Reasons that can make a contract voidable are coercion, undue influence, fraud, misrepresentation and mistakes. Based on Contracts Act 1950, Section 15, Coercion can be defined as the “committing, or threatening to commit any act forbidden by the Penal Code, 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
Voidable Contract – Coercion
The word “contract” can be defined as a voluntary, deliberate, and legally binding agreement between two or more competent parties. Contracts are usually written but may be spoken or implied, and generally have to do with employment, sale or lease, or tenancy. A contractual relationship is evidenced by an offer, acceptance of the offer, intention to create legal relations, consideration, certainty and capacity. However, while all parties may expect a fair benefit from the contract or otherwise courts may set it aside as inequitable, it does not follow that each party will benefit to an equal extent. Existence of contractual-relationship does not necessarily mean the contract is enforceable, or that it is not void or voidable. Contracts are normally enforceable whether or not in a written form, although a written contract protects all parties to it. Some contracts such as for sale of real property, instalment plans, or insurance policies must be in writing to be legally binding and enforceable. Other contracts are assumed in, and enforced by, law whether or not the involved parties desired to enter into a contract.
Under the Law of Contracts, Voidable Contracts means a formal agreement between two parties that may be rendered unenforceable for a number of legal reasons. A voidable contract can be legally rejected by one party and is said to have a defect. If the party with the power to reject the contract chooses not to reject the contract despite the defect, the contract becomes valid and enforceable. Reasons that can make a contract voidable are coercion, undue influence, fraud, misrepresentation and mistakes. Based on Contracts Act 1950, Section 15, Coercion can be defined as the “committing, or threatening to commit any act forbidden by the Penal Code, 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