CONTRACT LAW L4 - Duress & Undue Influence - DURESS Flashcards
Does duress to the person need to be decisive? (1)
No duress to the person by actual or threatened violence amounts to one factor influencing the decisions to enter into the contract.
What does the case of BARTON V ARMSTRONG demonstrate? (5)
The leading case on duress to the person.
The Privy Council concluded in this case that once it is established that the physical threats contributed to the decision to enter into the contract, duress will be found, so long as the threats were one of the reasons for contracting.
They stated that the burden of proof was on the party who exerted the pressure to show the threats.
It can be seen that causation test for duress o the person is not a difficult one to overcome.
The duress need to be only one factor influencing the wronged party’s behaviour.
What does OCCIDENTAL WORLDWIDE INVESTMENT V SKIBS A/S AVANTI 1976 demonstrate? (1)
A contract can be avoided when there is a threat to seize the owner’s property to damage it.
Is it sufficient to show that duress to seize property / goods will be one factor influencing the wronged party’s behaviour? (1)
Unlikely.
Compare economic duress to the other types of duress. (3)
It has developed more recently and poses particular difficulties and appears to be less well settled than the other two doctrines.
What does the case of DSND SUBSEA LTD V PETROLEU GEO SERVICES ASA 2000 demonstrate? (4)
It is the best case to demonstrate economic duress.
The ingredients of an actionable duress are that there must be pressure (a) whose practical effect is that there is compulsion on, or lack of practical choice, for the victim
(b) which is illegitimate
(c) which is significant cause including the claimant to enter into the contract
What have the courts clarified ‘significant cause’ to mean? (1)
It must be shown that the agreement would not have been entered into if there had not been the duress.
What happens to a contract if a person enters it under duress? (2)
It is voidable, meaning it will stay in force unless some action is take.
What is the remedy for duress? (1)
Rescission.
What is rescission? (1)
A remedy which involves returning the parties to their pre-contractual position.
When may rescission be lost? (1)
Where the contract is affirmed.
What is affirmation? (2)
After the duress has cased the innocent party fails to challenge the contract in a timely manner and / or acts in compliance with its terms.
