1. Coercion
   1. act amounting
      1. Commitment of any act for bidden by Indian Penel code
      2. The unlawful detaining of property
      3. Threatening to detain any property
      4. Threatening to commit any act forbidden by IPC
   2. Effect
      1. The contract is voidable at the option of the party whose consent was obtained by coercion
      2. When aggrieved party decides to set aside the contract it must give back any benefit receieved from the party under contract
      3. If aggrieved party does not opt to set aside the contract it works as valid contract
   3. burden of proof
      1. burdon of provig that the consent was obtained by coercion shall lie upon the aggrieved party who wants to set aside the contract, such party has to prove that he would not have entered into the contract had the coercion not been employed.
2. Undue Influence
   1. act amounting
      1. 1. The relation between parties are such that one of the parties is in the position to dominate others will
         1. he holds real or apperent authority over the other
         2. he stands in fiducial relation to other
         3. he makes contract with person whose mental capacity is temp. or permenently affected
      2. 2. The dominant party uses his position to obtain un fair advantage over other
   2. Effect
      1. 1. The agreement is voidable at the option of paty whose consent was caused by undue influence.
      2. 2. The court may direct the aggrieved party to refund the benefit whether in whole or in part or set or set aside the contract without any direction for refund of benefit
      3. 3. If the aggrieved party does not opt to set aside the contract it works as any other valid contract
3. Fraud
   1. Fraud any of the following act
      1. 1. A suggestion that a fact is true, by one, who dows not believe it to be true
      2. 2. an active concealment of fact, by one, having knowledge of the act
      3. 3. a promice made without any intention of performing it
      4. 4. any other act fitted to deceive
      5. 5. any such act or omission which law specially declares to be fraudent
   2. Mere silence is not fraud
      1. Caveat Emptor i.e. let buyer beware
   3. Instance where silence amounts to fraud
      1. Where silence in itself is equivalent to speech:- a person who keeps silennt knowing that his silence is going to be deceptive is guilty of frauf
      2. When it is duty of the person keeping silence to speak
         1. Contract between parties having fiduciary relationship
         2. Contract of insurance
         3. Contract of sales of immovable property
         4. contract of share allotment
         5. contract of partnership
         6. contract of family arrangement
      3. When it is duty of the seller to disclose latent or hidden defect in contract of sale
      4. When change in circumstances requireds disclosure:- Statement is true when made but the fact changes before contract is entered
   4. Effect of fraud
      1. The contract is voidable at the option of the defrauded party
      2. When opt to set aside the contract (rescind), it may claim restitution in entirely i.e. to be placed in the same position as if there was no contract at all
      3. The defrauded party may affirtm the contract i.e. may insist that contract shall be performed and that it should be put in the position in which he would have been if the representation was true
   5. Burden of proof
      1. lies upon the party who seek relief in the court of law
4. Misrepresentation
   1. Misrepresentation means and includes
      1. the positive assertion of the statement not warrented by the information
      2. any breach of duty which without an intend to deceive, gains an advantage to the person commiting it , or anyone claiming under him, by misleading another to his prejudice or to the prejudice of any one claiming under him
      3. causing , how ever innocently a party to an agreement to make a mistake as to the substance of the thing which is the subject of the agreement
   2. Effects
      1. The agree ment is voidable at the party whose consent is obtained by mis representation
      2. The aggrieved party may affirm the contract i.e. may insist that the contract shall be performed and he should be put in the position in which he would have been if the representation made was true. How ever misrepresentation does not entitle the aggrieved party to claim damage by way of interest or otherwise for expenses
   3. When consent is said to be caused by mis representation
      1. There was mis representation of fact
      2. The fact was material:- misrepresentation is considered material when it would be likely to affect the conduct of a reasonable person
      3. If some one agrees to contract based on his own invistigation then contract cannot be avoided
   4. Burden of proof
      1. lies upon the party who seek relief in the court of law
5. Mistake
   1. Defined as erroneous (Wronge) belief about something
   2. Mistake of law
      1. Mistake of indian law:- Does not affect the validity of contract
      2. Mistake of foreign law
6. Limitation to the right of rescission
   1. By lapse of thime
   2. By affirmation
   3. restitution not possible
   4. right of third party