Contract Act 1872 Section 90
Contract Act 1872 Section 90 explains when agreements made without free consent are voidable at the option of the party whose consent was caused by coercion, fraud, or undue influence.
Contract Act Section 90 addresses situations where a party's consent to an agreement is obtained through coercion, fraud, or undue influence. It declares such agreements voidable at the option of the party whose consent was so obtained. This provision is crucial for protecting parties from unfair pressure or deception in contract formation.
Understanding Section 90 is vital for businesses and individuals to ensure that contracts are entered into freely and fairly. It safeguards the integrity of commercial transactions by allowing affected parties to rescind agreements made under improper circumstances.
Contract Act Section 90 – Exact Provision
This section establishes that if a party's consent is not freely given but obtained by wrongful means such as coercion, fraud, or undue influence, the contract is not automatically void but voidable. This means the affected party can choose to either affirm or rescind the contract. It ensures fairness by protecting parties from exploitation or deception during contract formation.
Consent obtained by coercion, fraud, or undue influence makes a contract voidable.
The affected party has the option to rescind or affirm the contract.
Protects parties from unfair pressure or deception.
Applies to all types of contracts.
Explanation of Contract Act Section 90
Section 90 focuses on the quality of consent in contract formation. It safeguards parties whose consent is compromised by wrongful means.
The section states that contracts made under coercion, fraud, or undue influence are voidable.
Affects parties whose consent was improperly obtained, including buyers, sellers, guarantors, and minors where applicable.
Requires proof that consent was caused by coercion, fraud, or undue influence.
Triggers the right to rescind the contract at the affected party's option.
Contracts remain valid unless the affected party chooses to void them.
Purpose and Rationale of Contract Act Section 90
This section aims to protect contractual fairness by ensuring that consent is genuine and freely given. It prevents exploitation and maintains trust in commercial dealings.
Protects parties from unfair or forced agreements.
Ensures free and informed consent in contracts.
Prevents fraud, coercion, and undue influence in contract formation.
Maintains certainty and fairness in agreements.
When Contract Act Section 90 Applies
Section 90 applies when a party's consent is obtained through wrongful means affecting contract validity.
Occurs when coercion, fraud, or undue influence is proven.
Any party whose consent was compromised may invoke it.
Affects all contracts where consent is essential.
Does not apply if consent was freely given.
Exceptions include contracts ratified after removal of coercion or fraud.
Legal Effect of Contract Act Section 90
Section 90 affects the enforceability of contracts by making them voidable rather than void. It allows the aggrieved party to avoid the contract but does not automatically nullify it. This section works alongside Sections 10 to 30, which govern offer, acceptance, consideration, and free consent, reinforcing the importance of genuine consent.
Makes contracts voidable if consent is tainted.
Does not void contracts automatically; option lies with the affected party.
Supports the principle of free consent under the Contract Act.
Nature of Rights and Obligations under Contract Act Section 90
Section 90 creates a right for the affected party to rescind the contract. Obligations under the contract may be suspended or terminated upon rescission. Duties to act fairly are mandatory, and failure to disclose coercion or fraud can have legal consequences.
Right to avoid contract is personal and discretionary.
Obligations may be discharged upon rescission.
Duties to act without coercion or fraud are mandatory.
Non-performance due to rescission is legally justified.
Stage of Transaction Where Contract Act Section 90 Applies
Section 90 is relevant primarily at the contract formation stage but may also affect performance and remedies stages if consent issues arise later.
Pre-contract: Identifying coercion or fraud before agreement.
Contract formation: Consent must be free and genuine.
Performance: Contract may be suspended if rescinded.
Breach: May arise if contract is affirmed or rescinded.
Remedies: Right to rescind or claim damages.
Remedies and Legal Consequences under Contract Act Section 90
The affected party can rescind the contract, seek damages for losses, or claim restitution. Courts may grant injunctions to prevent enforcement of contracts made under coercion or fraud. Contracts may be declared voidable but not automatically void.
Right to sue for rescission of contract.
Claim damages for losses caused by coercion or fraud.
Specific performance generally not granted if consent was tainted.
Injunctions to prevent enforcement in some cases.
Contracts remain valid unless rescinded.
Example of Contract Act Section 90 in Practical Use
Person X was forced by threats to sign a contract selling his property below market value. Later, X invoked Section 90 to void the contract, arguing his consent was obtained by coercion. The court allowed rescission, protecting X’s rights and invalidating the unfair contract.
Coercion invalidated consent, making contract voidable.
Affected party can rescind contract to avoid unfair terms.
Historical Background of Contract Act Section 90
This section was introduced to address unfair practices in contract formation. Historically, courts recognized the need to protect parties from coercion and fraud. Over time, the provision has evolved to clarify the voidability of contracts rather than automatic nullity.
Created to ensure fairness in contracts.
Courts historically protected free consent.
Amended to balance contract stability and fairness.
Modern Relevance of Contract Act Section 90
In 2026, Section 90 remains vital amid digital contracts and e-commerce. It protects parties from undue influence or fraud in online agreements and electronic signatures. The provision ensures trust in modern commercial transactions and dispute resolution.
Applies to digital and electronic contracts.
Protects against online fraud and coercion.
Essential for e-commerce and remote transactions.
Relevant in resolving modern contractual disputes.
Related Sections
Contract Act Section 2 – Definitions of contract terms.
Contract Act Section 10 – Requirements of a valid contract.
Contract Act Section 13 – Meaning of consent.
Contract Act Section 23 – Lawful consideration and object.
IPC Section 415 – Cheating, relevant where consent is obtained by deception.
Evidence Act Section 101 – Burden of proving contract terms.
Case References under Contract Act Section 90
- Ranganayakamma v. Alwar Setti (1914, ILR 37 Mad 268)
– Consent obtained by coercion renders contract voidable at the option of the coerced party.
- Chikkam Ammiraju v. Chikkam Seshamma (1919, ILR 41 Mad 521)
– Undue influence invalidates consent, making contract voidable.
- Mohori Bibee v. Dharmodas Ghose (1903, ILR 30 Cal 539)
– Contracts with parties lacking free consent are voidable.
Key Facts Summary for Contract Act Section 90
- Section:
90
- Title:
Voidability for Coercion, Fraud, and Undue Influence
- Category:
Consent, Voidability
- Applies To:
Parties whose consent is obtained by coercion, fraud, or undue influence
- Transaction Stage:
Contract formation and remedies
- Legal Effect:
Contracts are voidable at the option of the affected party
- Related Remedies:
Rescission, damages, injunctions
Conclusion on Contract Act Section 90
Contract Act Section 90 plays a crucial role in ensuring that consent in contracts is genuine and free from coercion, fraud, or undue influence. It empowers parties to avoid unfair agreements and maintains integrity in commercial transactions. By making contracts voidable rather than void, it balances contractual certainty with fairness.
This provision is fundamental for protecting vulnerable parties and promoting ethical business practices. Understanding Section 90 helps businesses and individuals safeguard their rights and ensures that contracts are formed on a foundation of free and informed consent.
FAQs on Contract Act Section 90
What does it mean for a contract to be voidable under Section 90?
It means the contract is valid until the affected party chooses to rescind it due to consent obtained by coercion, fraud, or undue influence. The party can affirm or avoid the contract.
Who can invoke Section 90 to void a contract?
Any party whose consent was caused by coercion, fraud, or undue influence can invoke Section 90 to void or rescind the contract.
Does Section 90 make a contract automatically void?
No, the contract is voidable, not void. It remains valid unless the affected party decides to rescind it.
How does Section 90 protect parties in digital contracts?
Section 90 protects parties from undue influence or fraud in electronic agreements, ensuring consent is genuine even in digital transactions.
What remedies are available under Section 90?
Remedies include rescission of the contract, damages for losses, and injunctions to prevent enforcement of contracts made under coercion or fraud.