Duress Flashcards
What is the legal effect of duress on a contract?
A. It is voidable
B. It is void
C. It is automatically unenforceable
D. It becomes binding only with court approval
A. It is voidable
Explanation: A contract entered into under duress is not automatically invalid, but the innocent party can choose to rescind it.
What remedy is typically available where duress is established?
A. Damages
B. Rectification
C. Rescission
D. Injunction
C. Rescission
Explanation: The remedy is rescission, which attempts to restore both parties to their pre-contract positions.
What is the test for duress to the person?
A. The threat must be the only reason for the contract
B. The threat must involve financial harm
C. The threat must be witnessed by a third party
D. The threat must be one factor influencing the decision
D. The threat must be one factor influencing the decision
Explanation: As in Barton v Armstrong, it’s enough that the threat contributed to the decision, even if not the only cause.
What is required to establish duress to goods?
A. The goods must have been sold under market value
B. The threat must involve property damage or withholding
C. The pressure must involve breach of a written contract
D. There must be a verbal threat only
B. The threat must involve property damage or withholding
Explanation: Duress to goods arises where someone agrees to contract due to a threat to property, e.g., seizure or damage.
A business is forced to accept new terms due to illegitimate pressure and no practical alternative. What type of duress is this?
A. Duress to goods
B. Undue influence
C. Economic duress
D. Commercial misrepresentation
C. Economic duress
Explanation: This fits the classic test from DSND Subsea: lack of practical choice, illegitimate pressure, and causation.
What may prevent rescission after duress has ended?
A. If the party signs under protest
B. If the party affirms the contract by continuing with it
C. If both parties are businesses
D. If the contract was in writing
B. If the party affirms the contract by continuing with it
Explanation: If the victim delays or continues performance, it can be taken as affirmation, blocking rescission.
Which of the following is not a required element of economic duress?
A. Illegitimate pressure
B. Lack of practical choice
C. Threat of physical harm
D. Causation – the pressure was a significant reason for agreeing
C. Threat of physical harm
Explanation: Physical harm relates to duress to the person. Economic duress involves commercial pressure, not violence.
