FLK 1 Contract

Question 1

Types of Duress

Answer 1

economic, duress to the person, duress of goods

Question 2

4 factors to see if econ duress is present

Answer 2

• these are guidelines- dont all need to be present
• did the person claiming to be coerced protest?
• did that person have any other available course of action?
• were they independently advised?
• after entering into the contract, did they take steps to avoid it?

Question 3

is duress void or voidable

Answer 3

voidable

Question 4

basis of duress

Answer 4

if the victim was acting involuntarily then his agreement to the contract is not real and can be dismissed

Question 5

rationale of duress

Answer 5

not lack of consent or knowledge as to its terms but the circs in which that decision is made

Question 6

test for duress

Answer 6

• duress must be operative
• lack of a reasonable alternative
• illegitimacy of the threat

Question 7

duress must be operative

Answer 7

need not be the only thing or main reason for the claimant entering into the contract, it needs to be a reason only

Question 8

lack of a reasonable alternative

Answer 8

not a question of there being no alternative but no reasonable alternative

Question 9

illegitimacy of the threat

Answer 9

• the threat of an act which is itself unlawful will be illegitimate
• illegitimate pressure must be distinguished from the rough and tumble of the pressures of normal commercial bargaining

Question 10

does there need to be a relationship with duress?

Answer 10

No- the only relationship is the contract

Question 11

remedies for duress

Answer 11

• victim will be seeking to escape from the agreement- to rescind the contract
• this might be lost due to the bars to rescission (eg affirmation)
• can get damages (money)