Modification of Contract (2)

Question 1

B is contracted to buy a Rolls Royce car from S. B threats S that unless S agrees to reduce the price by 50%, B will kill S.

What type of duress is this?

Answer 1

Duress of person.

Question 2

B is contracted to buy a Rolls Royce car from S. B threats S that unless S agrees to reduce the price by 50%, B will burn the car.

What type of duress is this?

Answer 2

Duress of goods.

Question 3

What is economic duress?

Answer 3

If a party to the contract is forced to modify the contract by the economic duress imposed by the other party, the modified contract is voidable.

Question 4

What are the three legal elements of economic duress?

Answer 4

1. Illegitimate pressure
2. Causation
3. No reasonable alternative

Question 5

What is illegitimate pressure?

Answer 5

Unlawful threats being exerted through pressure.

Alternatively, where the defendant has acted in an unacceptable way, which courts amount to illegitimate pressure.

Question 6

What is causation?

Answer 6

The illegitimate pressure had caused the threatened party to enter into the contract.

Question 7

What is no reasonable alternative?

Answer 7

The threatened party had no other alternative but to give into the threat from the other party.

Question 8

What is promissory estoppel?

Answer 8

Promissory estoppel is brought up when a party makes a promise that another party relies on, the promisor cannot go back on the promise.