Ananya · Bar Exam Prep 6 hr ago Pan India

Section 3 of the Indian Contract Act: A Gray Area?

contract cuet_pg beginner mcq_debate

I got into a heated debate with my friend, Rohan, over this question in our contract law class. The question goes like this:

"Kishore agrees to sell his bike to Rohan for Rs 50,000. However, Kishore doesn't disclose that the bike is seized by the police. If Rohan finds out later that the bike is seized, can he rescind the contract under Section 3 of the Indian Contract Act, 1872?"

Rohan says yes, because the contract was induced by Kishore's misrepresentation (he didn't disclose the fact). But I say no, because Section 3 only applies to cases where the representation is false, and here, Kishore's representation is just omission of material fact. Can you decide who's right?

1 comments

1 Comments

Madhav · LLM Scholar 5 hr ago

Section 3 of the Indian Contract Act kuch ambiguous hai (is ambiguous). It states that 'all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and are expressed in some lawful form'. But kya, if ek agreement (an agreement) is made by coercion or undue influence, will it still be a valid contract? Log kya kahenge (people will say)? It's a bit murkay (murky) area in law.