TOPIC 10: DURESS AND UNDUE INFLUENCE
LEARNING OBJECTIVES
The development of duress and its expansion to cover the economic
duress
The requirements of economic duress, whether otherwise lawful acts maa
constitute economic duress
The effects upon a contract’s enforceability of finding duress
The definition and different categories of undue influence
The effects, if established, are of undue influence.
THE DEVELOPMENT OF DURESS AND ECONOMIC DURESS
MODULE GUIDE
o Duress generally refers to forcing an individual to agree to the terms of a
contract or get into a contract.
o The common law was slow to develop a doctrine of duress.
o Duress to the person was only recognized as duress initially.
o Later it expanded to encompass duress to goods and economic duress.
o Duress generally renders the contract voidable rather than void.
The effect of finding that duress renders a contract voidable creates several
important consequences:
1. The party subject to the duress must act promptly to set aside the
contract. North Ocean Shipping v Hyundai Construction.
2. A third party can acquire good title to goods even though his vendor has
acquired them to a contract brought about by duress.
There are multiple forms of duress.
DURESS TO PERSON
o First form of duress recognized by common law.
o This occurs when one party to a contract forces another to contract with
him through threats of violence.
BARTON V ARMSTRONG: Where a party enters into a contract for several
reasons, of which duress is only one reason, the contract is still voidable.
LEARNING OBJECTIVES
The development of duress and its expansion to cover the economic
duress
The requirements of economic duress, whether otherwise lawful acts maa
constitute economic duress
The effects upon a contract’s enforceability of finding duress
The definition and different categories of undue influence
The effects, if established, are of undue influence.
THE DEVELOPMENT OF DURESS AND ECONOMIC DURESS
MODULE GUIDE
o Duress generally refers to forcing an individual to agree to the terms of a
contract or get into a contract.
o The common law was slow to develop a doctrine of duress.
o Duress to the person was only recognized as duress initially.
o Later it expanded to encompass duress to goods and economic duress.
o Duress generally renders the contract voidable rather than void.
The effect of finding that duress renders a contract voidable creates several
important consequences:
1. The party subject to the duress must act promptly to set aside the
contract. North Ocean Shipping v Hyundai Construction.
2. A third party can acquire good title to goods even though his vendor has
acquired them to a contract brought about by duress.
There are multiple forms of duress.
DURESS TO PERSON
o First form of duress recognized by common law.
o This occurs when one party to a contract forces another to contract with
him through threats of violence.
BARTON V ARMSTRONG: Where a party enters into a contract for several
reasons, of which duress is only one reason, the contract is still voidable.
