Jonah Patel
Duress is a legal term referring to a situation where an individual is pressured into signing a contract against their will. It is a form of defence in contract law, where the defendant uses threats to force the plaintiff to commit a crime against their wishes. Duress can be categorised as either physical or economic. Physical duress involves the use of violence or the threat of causing physical harm to an individual, their family, or their goods. Economic duress, on the other hand, refers to threatening another with economic harm, such as financial ruin or severe economic loss. In both types of duress, one party enters into a contract unwillingly due to some form of threat or coercion. If a contract is signed under duress, it can be considered voidable or null and void, as if it was never signed. However, proving duress can be challenging and often requires legal assistance and supporting evidence.
| Characteristics | Values |
|---|---|
| Type of Duress | Physical, Economic, Undue Influence |
| Nature of Threat | Bodily harm, Death, Financial ruin, Defamation, Criminal prosecution, Imprisonment, Loss of goods |
| Nature of Pressure | Physical, Psychological, Emotional |
| Evidence | Threatening emails, Witness statements, Physical evidence of threats, Witness testimonies |
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Physical duress
In such cases, the affected party may take action to invalidate the contract, as it is considered signed under duress or coercion, which means it was not signed voluntarily. However, it is important to note that the contract is considered valid until proven otherwise. The affected party must demonstrate that they were forced to sign by providing evidence of a serious threat of unlawful or wrongful action, as well as proof that they had no reasonable alternative but to agree to the contract. This can include witness testimonies, expert opinions, and documentation of the incident.
To prove physical duress, it is essential to act swiftly and gather evidence to support the claim. This may include seeking an online notarized affidavit to ensure the validity and reliability of the evidence collected. Additionally, consulting with a qualified attorney who understands duress claims and contract law is highly recommended to protect one's rights and build a strong case.
It is worth noting that not every type of pressure constitutes physical duress, and the seriousness of duress can vary depending on the specific circumstances, such as the person's age, ranks, and degree of affection. Nevertheless, physical duress, when proven, can render a contract voidable, as it indicates that the person signed against their will and without freedom of choice.
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Economic duress
If duress is proven, the contract can be rescinded, meaning it is treated as if it never existed. The party affected by duress may also be entitled to restitution, where any money or benefits exchanged under the contract are returned. Additionally, they may be entitled to damages to compensate for any losses suffered as a result of the duress.
To prove economic duress, the burden of proof lies with the party claiming it. Essential evidence includes relevant communications, legal advice, and witnesses who can testify about the coercion they observed. It is crucial to collect all possible evidence, including emails, text messages, recorded conversations, and any physical evidence of threats.
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Coercion
The two main categories of duress are physical and economic. Physical duress involves threatening to cause physical harm to an individual, their family, or their goods. For instance, in Barton vs Armstrong (1976), Armstrong threatened to murder Barton if he did not sign a contract for the sale of certain companies. The privy council accepted the defense of duress and agreed to rescind the contract. Economic duress, on the other hand, involves threatening another with economic harm, such as bankruptcy or severe economic loss, if the contract is not signed. An example would be threatening to terminate a crucial business relationship unless a contract is signed under unfavorable terms.
To prove that a contract was signed under coercion or duress, it must be established that the contract was agreed to because of a threat of illegitimate pressure and that, without this threat, the contract would not have been signed. Evidence of coercion or duress can include threatening emails, witness statements, or other physical evidence of threats. The key to determining whether there was duress is looking at how the actions affected the alleged victim's ability to make an informed decision.
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Misrepresentation
For example, suppose Company A is negotiating a contract with Company B to deliver hazardous materials. Company A knows that the state has recently made it illegal to import anything hazardous, but they do not disclose this information to Company B. As a result, Company B agrees to the contract without knowing all the relevant information. This could be considered misrepresentation and, therefore, a form of duress.
It's important to note that not all types of pressure or threats constitute duress. For example, engaging in negotiations and leveraging one's bargaining power to secure favourable terms is not necessarily considered duress. The key is to look at how the actions affected the alleged victim's ability to make an informed decision. If they felt they had no reasonable alternative but to agree to the contract, then it is more likely to be considered duress.
If someone believes they have signed a contract under duress due to misrepresentation, they should consult with a lawyer and gather all relevant evidence, such as emails, text messages, recorded conversations, and physical evidence of threats. Witness statements can also be crucial in proving that duress occurred.
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Undue influence
Courts will consider the dynamics of the relationship and patterns of behaviour when determining whether undue influence was present, rather than focusing on specific actions. They will also consider the relationship, tactics, and other subtle facts leading up to the signing of the contract.
If a contract is signed under undue influence, the court may decide to revoke the contract under specific terms. Any property claimed by the at-fault party may have to be returned or monetarily compensated, and the situation often results in equitable restitution.
It is important to note that if someone feels they have entered a contract under undue influence, they should seek help from a professional attorney as soon as possible.
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Frequently asked questions
Duress refers to a situation where a person is forced or pressured into signing a contract against their will, usually under some form of threat. This threat can be physical, psychological, or economic.
Physical duress can include threatening to harm the other party or their family, or their goods. An example of this is *Barton v. Armstrong (1976)*, where Armstrong threatened to murder Barton if he did not sign a contract for the sale of certain companies. Economic duress occurs when one party threatens another with economic harm, such as financial ruin or bankruptcy. An example of this is threatening to terminate a business relationship unless a contract is signed under unfavorable terms.
If you believe you signed a contract under duress, you should consult a lawyer and gather all relevant evidence, such as emails, text messages, recorded conversations, and physical evidence of threats. Witness statements can also be crucial. The burden of proof lies with the party claiming duress, and they must prove that they only accepted the contract due to a threat of illegitimate pressure.
