Indian Contract Act 1872 Section 15. Coercion defined.—
“Coercion” is the committing, or threatening to commit, any act forbidden by the Indian Penal Code (45 of 1860), 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 into an agreement.
Explanation.—
It is immaterial whether the Indian Penal Code (45 of 1860) is or is not in force in the place where the coercion is employed.
Illustration
A, on board an English ship on the high seas, causes B to enter into an agreement by an act amounting to criminal intimidation under the Indian Penal Code (45 of 1860).
A afterwards sues B for breach of contract at Calcutta.
A has employed coercion, although his act is not an offence by the law of England, and although section 506 of the Indian Penal Code (45 of 1860) was not in force at the time when or place where the act was done.
Explanation of Section 15 Indian Contract Act 1872
Section 15 of the Indian Contract Act, 1872, defines coercion, a factor that undermines free consent under Section 14.
Coercion involves using force or threats to compel someone into a contract, such as committing or threatening acts prohibited by the Indian Penal Code (e.g., criminal intimidation) or unlawfully detaining or threatening to detain property, with the intent to force agreement.
The explanation clarifies that coercion applies even if the Indian Penal Code is not in force where the act occurs, as shown in the illustration where A uses criminal intimidation on an English ship, yet it’s still coercion in India. If coercion is present, consent is not free, and the contract may be voidable under Section 19. This section safeguards against agreements made under duress.
Key Points on Coercion in Contract 1872
- Coercion includes illegal acts or threats under the Indian Penal Code or unlawful property detention/threats.
- Intent must be to force someone into an agreement.
- Consent obtained through coercion is not free, making the contract voidable (Section 19).
- The explanation confirms coercion applies regardless of whether the Indian Penal Code is in force at the location.
- Linked to Section 14 (free consent) and Section 10 (valid contracts).
Examples of Threat in Contract 1872
- A willingly agrees to sell goods to B for ₹5 lakh in 2025—Section 15 confirms no coercion, forming a valid contract.
- B threatens to kidnap A’s child unless A signs a contract in 2024—Section 15 deems this coercion, as kidnapping is forbidden by the Indian Penal Code.
- B unlawfully holds A’s laptop to force a sale agreement in 2023—Section 15 identifies this as coercion via property detention.
- A, on a foreign ship, threatens B with violence under the Indian Penal Code in 2025, as in the illustration—Section 15 rules this coercion, voidable in India.
- B threatens to destroy A’s documents unless A signs a lease in 2024—Section 15 classifies this as coercion through property threat.
Case Laws Section 15 Indian Contract Act 1872
- Chikkam Ammiraju v. Chikkam Seshamma (1917): Madras High Court held that threatening suicide to force an agreement is coercion under Section 15, as it’s an act forbidden by the Indian Penal Code (ILR 41 Mad 33).
- Ranganayakamma v. Alwar Setti (1889): Madras High Court ruled that detaining a minor to pressure a relative into a contract constitutes coercion, per Section 15 (ILR 13 Mad 214).