duress and undue influence Flashcards
definition of duress
the physical confinement of a person or the detention of a contracting party’s property, a threat of harm made to compel someone to do something against their will, WRONGFUL COERCION by one to compel another to do something they would not voluntarily have done
physical duress
ouchie
mental duress
undue influence or over persuasion
duress of goods
threats to a persons property
economic duress
mafia like commercial interference
duress
victim has NO REASONABLE CHOICE
174
PARTY UNDER DURESS DOES NOT FREELY ASSENT TO CONTRACT FORMATION.
if actual physical compulsion it is void. if it is threats then it is void or voidable depending on the facts
duress
bad faith, no reasonable alternative is hard to prove, voidable. may be dissaffirmed or ratified
economic duress (business compulsion)
weaker party was a victim of wrongful or unlawful or improper threat OR weaker party was deprived of free will and judgement
economic duress (judicial interpretation)
involuntary acceptance of terms of another
lack of reasonable alternative under the circumstances
causation (coercive acts of another, intentionally caused, threat must substantially contribute to the manifestation of intent)
choice 3 economic duress restatement 2 and 175
wrongful conduct OR improper threat
lack of reasonable alternative
actual inducement is measured by subjective standard (causation)
what qualifies as a improper threat anyways
words or conduct bad faith threat of breach of conduct crime or tort criminal prosecution bad faith civil prosecution
economic duress
one party causes or is responsible for another economic plight
hard bargaining
one party takes advantage of the other party’s economic plight
undue influence 177
unfair persuasion of party who is under domination of person OR who by future of the relation between them is justified in assuming that the person will not act in a manner inconsistent with his welfare
voidable
usually family or fiduciary relationships
coercion
threat and power
persuasion
understanding and manipulation
undue influence
can be established by over persuasion and pressure but falls short of actual threats or harm. one party dominates the will of the other by virtue of their relationship. under influence has more to do with taking advantage of weaker emotional or psychological state
lessened capacity to make free contract
age, physical condition, emotional anguish, combination
does not have to be permanent
excessive strength by dominant party over servant party (unfair advantage)
discussion of transaction at unusual or inappropriate time. consummation of transaction unusual place. insistent demand that business be finished at once. extreme emphasis on untoward consequences of delay. use of multiple persuaders, absence of 3rd party advisors to servant party, statements that there is no time to consult financial advisors or attorneys
proof that the weaker party was
susceptible of being unduly influenced
proof than an
opportunity to exercise undue influence existed
proof of an actual
influence over the weaker party occurred
RESULTING IN A UNNATURAL, ILLOGICAL, OR SUSPICIOUS TRANSACTION