5. Free Consent

What is defined as free consent according to Section 14 of the Act?

• Consent obtained under duress

• Consent obtained without coercion, undue influence, fraud, misrepresentation, or mistake

• Consent obtained from a minor

• Consent obtained through manipulation

What does coercion involve?

• Making a promise without intention to fulfill it

• Using threats or force to compel someone

• Offering a bribe to influence a decision

• Providing misleading information

According to Section 15, coercion can involve which of the following?

• Threatening to reveal a secret

• Threatening to commit an act forbidden by law

• Offering a financial incentive

• Using emotional manipulation

What is the effect of coercion on a contract?

• It makes the contract valid

• It has no effect on the contract

• It makes the contract voidable

• It makes the contract void

What characterizes undue influence?

• One party is in a position to dominate the other

• Both parties have equal power

• The contract is made in a public setting

• The parties are strangers

Which of the following is an example of undue influence?

• A teacher promising good grades in exchange for a watch

• A parent advising their child

• A friend borrowing money

• A person selling a car at market price

What constitutes fraud in a contract?

• Making a false statement with intent to deceive

• Providing accurate information

• Offering a discount

• Making a promise without any intention

Which of the following is NOT a form of fraud?

• Active concealment of facts

• Innocent misrepresentation

• Making a false statement

• Making a promise without intention to perform

What is misrepresentation?

• Using threats to obtain consent

• Making a false statement without intent to deceive

• Providing accurate information

• Deliberately lying to deceive another party

Which type of misrepresentation involves a positive claim believed to be true?

• Coercive misrepresentation

• Innocent misrepresentation

• Fraudulent misrepresentation

• Negligent misrepresentation