Chapter II - Of Contracts, Voidable Contracts and Void Agreements
Section 15
Section 15: Coercion
Section 15 defines coercion for contractual consent. It covers the specified prohibited acts or threats and unlawful detention or threatened detention of property, with the intention of causing a person to enter an agreement.
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This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
“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.
Rule and business relevance
The prejudiced person need not be the contracting party alone: the wording refers to any person whatever. The explanation addresses the place where coercion is employed. Section 19 supplies the relevant voidability rule when consent is caused by coercion.
Limits and related provisions
Commercial difficulty or a tough negotiation is not automatically coercion; the statutory act, threat or property detention and intention must be established. The quotation retains historical IPC references, so current criminal-law references, repeal and savings require a separate applicable-law check. Do not infer a criminal conviction merely from a contractual allegation.
Hypothetical business example
Hypothetical: a counterparty unlawfully retains valuable business property to force a signature on a new agreement. The business preserves the threats, detention facts and link to the signature for assessment under Sections 15 and 19.
Practical decision flow
Identify the alleged prohibited act, threat or unlawful property detention and who was prejudiced.
Preserve communications and evidence linking that conduct to the agreement and consent.
Obtain advice on contractual relief and separately on any current criminal-law issue or urgent protective remedy.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Identify the alleged prohibited act, threat or unlawful property detention and who was prejudiced.
- Preserve communications and evidence linking that conduct to the agreement and consent.
- Obtain advice on contractual relief and separately on any current criminal-law issue or urgent protective remedy.
Avoid
- Commercial difficulty or a tough negotiation is not automatically coercion; the statutory act, threat or property detention and intention must be established. The quotation retains historical IPC references, so current criminal-law references, repeal and savings require a separate applicable-law check. Do not infer a criminal conviction merely from a contractual allegation.
Glossary
- Coercion
- The conduct and intention described by Section 15, not merely general bargaining pressure.
- Causation of consent
- The connection between the coercive conduct and the party's agreement.
Frequently asked questions
Must the threat target only the contracting party?
The definition refers to prejudice of any person whatever, subject to its other conditions.
Is a difficult business choice automatically coercion?
No. The statutory conduct, intention and relevant connection to consent must be examined.
Where is the contractual consequence addressed?
Section 19 addresses voidability when consent is caused by coercion.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026