In: Economics
Briefly explain free consent of parties with example.
In a contract, between two parties both of them have to knowingly and willingly enter into the agreement. The concept of free consent comes in here, to determine whether both parties are in the term of willingly and knowingly.
Consent is defined when both parties agree upon the same thing in the same sense. For the consent to be free consent, it should not be influenced by; Coercion, Fraud, Mistake, Misinterpretation, and whether any influence was used to get an advantage in the consent.
For example:
A student pays his teacher some amount under the criteria he gets good grades. This is not a free consent as he was under the influence of his teacher.
Another example is where a person has three cars and is selling one of his cars. A buyer approaches him and they agree on the amount. The seller is selling the Audi, while the buyer thinks he is selling the Ferrari. Since due to misinterpretation there is no free consent here and the contract is void.
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