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Report No. 199

(A) Procedural unfairness: Indian statute law:

(a) Indian Contract Act, 1872 (Procedural unfairness):

The Indian Contract Act, 1872 refers to several aspects of procedural unfairness. section 13 requires consent of all the parties to a contract for its formation. section 14 deals with 'free consent' and states that a 'consent' is free where it is not caused by

(1) coercion, as defined in section 15, or

(2) undue influence, as defined in section 16, or

(3) fraud, as defined in section 17, or

(4) misrepresentation, as defined in section 18, or

(5) mistake, subject to sections 20, 21 and 22, or

(6) undue influence as defined in section 19A.

Section 19 states that contracts vitiated by coercion, fraud or misrepresentation are 'voidable'. In this section, 'undue influence' was initially there but was deleted by section 3 of Act 6 of 1889 and under the same Act of 1889, section 19A was inserted to say that any contract vitiated by 'undue influence' may be set aside either wholly or subject to conditions. section 20 states that a contract is 'void' if both parties are under a mistake as to a matter of fact.

These are provisions of the Indian Contract Act, 1872 which deal with 'procedural' unfairness.

Unfair (Procedural and Substantive) Terms in Contract Back

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