Contract 11 - Duress

Question 1

What are the 3 types of duress?

Answer 1

1. Duress to the Person 🧍 🤏: actual or threatened violence; one factor influencing decision to enter contract (need not be decisive)
2. Duress to Property 🏠🐘: seizure or damage to owner’s property (or threat) - but for duress, agreement would not have been entered into
3. Economic Duress 💰:

Question 2

What is the effect of Duress
💰

Answer 2

Makes contract
- Voidable 🗑️
- Rescission 🔂 (not available if contract has been affirmed🎁🤭).

Question 3

What is required for economic duress?
💰

Answer 3

• Pressure 😖
• lack of practical choice for victim🤷
• which is illegitimate 😈
• is a significant cause inducing C to enter contract (but for test) 🐘

Question 4

What considerations are there to determine if pressure is illegitimate for economic duress?
💰

Answer 4

• Has there been actual or threatened breach of contract? 💥
• Has person exerting pressure acted in bad faith? 😈
• Did victim protest at time? 🪧
• Has victim affirmed or sought to rely on it? 🎁🤭

Question 5

What cases are there for Duress?

Answer 5

• Cladding company gouged client who had other contracts riding on the cladding being in place 🏢 - ED
• D’s sole carrier contract was less lucrative than the carried expected, demanded price increase 🚚- ED
• exhibition due to open forced to pay builder whose members were on strike more cash 👷‍♂️- ED no practical choice.
• diving company reused to dive for safety reasons without more pay/terms 🤿- legitimate pressure so not illegitimate.
• supplier of boat demanded 10% more at last minute 🛳️. Buyer didn’t complain until 10 months later - no ED as did not protest & 10 months meant affirmed contract.