What is the concept of free consent as defined in the Indian Contract Act?

Study for the CA Foundation Business Law Exam. Practice with multiple-choice questions, review detailed explanations, and ace your exam!

The concept of free consent, as defined in the Indian Contract Act, fundamentally revolves around the notion that for a contract to be valid, the agreement must be made willingly and freely by all parties involved. This means that consent must not be obtained through coercion, undue influence, fraud, misrepresentation, or mistake.

When option A refers to a mutual agreement without any coercion or undue influence, it accurately captures the essence of free consent, emphasizing that all parties enter the agreement willingly and without any external pressures or manipulations. This requirement ensures the integrity of the contractual relationship, as the parties involved can be assured that their decisions were made independently and with a clear mind.

The other options do not encapsulate the full scope of free consent. Making a decision under mental distress, as indicated in option B, suggests an imbalance or impairment in decision-making capacity, thus contradicting the notion of free consent. Option C, which implies the need for contracts to benefit both parties equally, relates more to the fairness of a contract rather than the freedom with which consent is given. Option D suggests that a formal agreement must be documented in writing, which pertains to the formality of a contract rather than the concept of consent itself. Understanding free consent ensures clarity

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