duress and undue influence Flashcards

1
Q

definition of duress

A

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

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2
Q

physical duress

A

ouchie

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3
Q

mental duress

A

undue influence or over persuasion

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4
Q

duress of goods

A

threats to a persons property

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5
Q

economic duress

A

mafia like commercial interference

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6
Q

duress

A

victim has NO REASONABLE CHOICE

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7
Q

174

A

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

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8
Q

duress

A

bad faith, no reasonable alternative is hard to prove, voidable. may be dissaffirmed or ratified

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9
Q

economic duress (business compulsion)

A

weaker party was a victim of wrongful or unlawful or improper threat OR weaker party was deprived of free will and judgement

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10
Q

economic duress (judicial interpretation)

A

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)

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11
Q

choice 3 economic duress restatement 2 and 175

A

wrongful conduct OR improper threat
lack of reasonable alternative
actual inducement is measured by subjective standard (causation)

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12
Q

what qualifies as a improper threat anyways

A
words or conduct
bad faith threat of breach of conduct
crime or tort
criminal prosecution
bad faith civil prosecution
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13
Q

economic duress

A

one party causes or is responsible for another economic plight

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14
Q

hard bargaining

A

one party takes advantage of the other party’s economic plight

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15
Q

undue influence 177

A

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

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16
Q

coercion

A

threat and power

17
Q

persuasion

A

understanding and manipulation

18
Q

undue influence

A

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

19
Q

lessened capacity to make free contract

A

age, physical condition, emotional anguish, combination

does not have to be permanent

20
Q

excessive strength by dominant party over servant party (unfair advantage)

A

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

21
Q

proof that the weaker party was

A

susceptible of being unduly influenced

22
Q

proof than an

A

opportunity to exercise undue influence existed

23
Q

proof of an actual

A

influence over the weaker party occurred

RESULTING IN A UNNATURAL, ILLOGICAL, OR SUSPICIOUS TRANSACTION