8/15/2023 0 Comments Contract signed under duress![]() If the pressure is illegitimate and it sis a significant factor in the entry into the relevant contract, this may be sufficient to negate a contract on the grounds of duress. The threat need not be the only reason why the contract was entered. It is not required that the person has entirely crumbled and is left without a choice. Also relevant is whether steps were taken to avoid the contract as soon as possible. The existence of protest or the existence of an alternative course, such as legal remedy is relevant. The presence or absence of independent advice is relevant. The duress or coercion need not be the only factor. The court determines whether the coercion has had the effect of coercing the other party to enter the contract. Even if pressure is lawful, it may be regarded as improper and unfair. The courts draw a distinction between acceptable and unacceptable commercial pressures. The nature of the pressure will be relevant. Where the source of the duress is not the other party but comes from another entity not under the other party’s control, this may be sufficient to cause a denial of specific performance. Where the source of the pressure is somebody acting on behalf of a party to the contract, that party may be bound by his actions. A contract entered by means of an illegitimate threat may be negated by duress. Duress is not necessarily limited to threats of violence to a person or property. Threats (even to do something lawful) may invalidate consent to contract. Contracts entered with a captor while in false imprisonment are likely to be void. A contract entered by means of a direct threat to the party or his family and other close persons is void. Operative duress, sufficient to negate a contract requires some element of improper force or coercion. his kind of financial or personal or circumstantial pressure is not sufficient to invalidate a contract. Many contracts are entered under the severest of personal and financial pressure. Parties often enter contracts which they would not ideally wish to make, but do so under the constraints of economic and personal circumstances. Pressure is permitted in business affairs, provided that it is legitimate. The will of the person threatened must be overborne. The types of duress which invalidate consent to a contract are limited in scope. These are extreme cases of unfair dealing.Ī contract may be invalidated if it can be shown to have been entered under duress. The third category comprises so-called unconscionable bargains. The second category of cases referred to as undue influence may apply to transactions between persons who are in a relationship of trust. The first category often called “duress” requires that there is pressure such as to completely negate consent to the contract. There are a number of circumstances in which agreements may potentially be invalidated by pressure. Such ordinary pressures will not avoid a contract. ![]() Agreements are frequently entered under economic and personal pressure. However, the categories of pressure which will invalidate an agreement are limited. Negating Contracts by Pressure and InfluenceĪn agreement to which consent is not freely given may be invalid. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |