Legal Position on Agreement signed under duress

[Imnindian Imnindian]

Dear Sir,

What is the legal position on a party claiming the agreement was signed under duress or coercion?

Specifically i would like to ask the following questions

1. On whom does the burden of proof lie? Is it for the complainant to prove that the agreement was forced upon it or is it the defendant who has to show that no force was ever used?

2. Till the time of final disposal of the case what would be the position of the agreement? I mean which party should get the interim order in its favour?

3. In my case opposite party says the agreement was signed under duress but has also filed criminal (IPC 420) for enforcing the agreement? Basically they want all the favourable conditions adhered to but deny all the other terms of the agreement. Is their any case law which could help me?

Please note that the agreement was signed(with 2 witnesses from each side) on a stamp paper and authorized by a notary but it is not registered anywhere.

Thanks!!

[Dr. Ashok Dhamija]

Section 19 of the Contract Act, 1872, says that when consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused.

Therefore, your opposite party can approach the court in this regard.

Section 19 further says that a party to a contract, whose consent was caused by fraud or misrepresentation, may, if he thinks fit, insist that the contract shall be performed, and that he shall be put in the position in which he would have been if the representation made had been true.

In view of this, if your opposite party has alleged that his consent was caused by fraud or misrepresentation, then he may insist that the contract shall be performed, etc., as mentioned above.

Burden to prove coercion would be on the party that alleges such coercion.

Interim order would depend on the facts and circumstances of each case, depending on where the balance of convenience lies, and whether grant or non-grant of interim order in favour of one or the other party would cause any irretrievable injury or damage which cannot be subsequently undone, and other relevant factors.

Every agreement is not requited to be registered, it depends on the nature of the agreement.

     

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Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

[Imnindian Imnindian]

Thank you Sir!!
But does that mean they can choose the terms and conditions mentioned in the agreement as per their convenience? As i said, they have violated the terms themselves and then are forcing me to hold up my end of the bargain.

Sir, you said that onus on proving the coercion lies on the complainant. Could you please help me with any citation? I have been trying for the last week but have not found any ruling which says this explicitly.

[Dr. Ashok Dhamija]

Have already replied partly to your first supplementary question in paragraphs 3 and 4 of my previous reply. Please check again. I cannot answer more than that since without seeing full papers, it is not possible to answer on facts; but I have given you the legal provision in that regard. Show your papers to some local lawyer to get full advice on that issue.

For your second question about burden of proof, see Section 103 of the Evidence Act, which says that: “The burden of proof as to any particular fact lies on that person who wishes the Court to believe in its existence, unless it is provided by any law that the proof of that fact shall lie on any particular person.”

     

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Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

[Imnindian Imnindian]

Ok, sir. will re-read your reply. Thanks again!!

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