Chapter 5: Duress

Question 1

What is duress, what effect does it have on a contract and what is the remedy?

Answer 1

It involves one party coercing another into a contract meaning consent is not present or it was not given freely. It can make a contract voidable if the actions/words amounting to the duress was one of the reasons for contracting and the remedy is recession

Question 2

Where does the burden of lie rest when proving duress?

Answer 2

On the party who exerted the pressure to show the threats/unlawful pressure did not contribute to the victim’s decision to contract

Question 3

What is duress to the person?

Answer 3

Actual or threatened violence

Question 4

What is duress to goods?

Answer 4

Threat to seize the owner’s property or to damage it

Question 5

What is economic duress?

Answer 5

Illegitimate pressure which results in a lack of practical choice (for example heavy fees) for the victim and this was a significant cause (but for test) making the claimant enter into the contract

Question 6

What are some factors which help determine whether there has been illegitimate pressure?

Answer 6

• Actual or threatened breach of contract
• Whether the person exerting the pressure acted in good or bad faith (to be distinguished from price increases in a contract)
• Presence of victim protest at the time of pressure
• Presence of any affirmation or reliance on the contract (victim must take steps to avoid the contract ASAP)