Duress

Question 1

Introduction?

Answer 1

Any contract where one party is forced to enter will not be valid, there are 3 types.

Question 2

What are the three kinds of duress?

Answer 2

1) Undue Influence - Where one party is in a position of trust influences the other into a contract. Allcard v Skinner - A novice nun gave all of her money to the Mother Superior.

2) Duress - A contract signed under blackmail or threats - Barton v Armstrong.

3) Economic duress - Consequences of economic duress on a contract if it becomes voidable.

Question 3

Requirements: 1) Has to be an unlawful threat?

Answer 3

In order to claim economic duress there must be an unlawful threat, this can be to breach a contract - Atlas Express v Kafko (usually threats to property are not covered) or to commit a tort - Universal Tankships v ITWF.

Question 4

Requirements: 2) Ordinary Commercial Pressure?

Answer 4

Ordinary commercial pressure will not amount to an unlawful threat or to duress.
This could be a threat to not renew a contract or to let a company go bankrupt - CTN Cash and Carry v Gallagher.

William v Roffey - Or merely an indication that a party is unable to continue with a contract.

Question 5

Requirements: 3) Consent?

Answer 5

The threat must have vitiated the threat of the other party and left them with no realistic alternative other than to comply to the threat - Pau On v Lau Yiu Long.

Question 6

Requirements: 4) Protest?

Answer 6

The party seeking to claim duress must have protested at the time and not hesitated to take legal action to avoid the contract.

The Atlantic Baron - The right to end a contract for duress may be lost with a lapse of time.

Question 7

Remedies?

Answer 7

Restitution - It restores the person back to the original position.

Damages are not available.