File Name: duress and undue influence .zip
Duress and undue influence essentially means that a person or party has been forced into a contract. The contract cannot be considered to be a valid agreement under these circumstances. Under common law, there are two doctrines to consider: duress and undue influence. This is where someone enters into a contract as a result of undue pressure. Duress can take many different forms. In Barton v Armstrong the plaintiff threatened to kill the defendant if he did not sell his interest in the company they were both major shareholders in.
Both Coercion and undue influence create flaw in consent and make contract voidable at the option of the aggrieved party. Presumed undue influence age, illness or distress. Because coercion is not a benign accusation, the concept is in need of clarification and should be used carefully. The primary difference between coercion and undue influence is that coercion involves physical and psychological pressure while undue influence involves mental pressure. Under Section 14 the Indian Contract Act, states that a consent is free when it is not caused by coercion. Coercion involves doing or threatening to do an illegal act.
Contract Law pp Cite as. The law of contract has always placed limits upon the exercise of economic power by contracting parties see Reiter, This role has traditionally been played by the doctrines of duress and undue influence, although recent years have also witnessed a largely abortive attempt to introduce into the common law a doctrine of inequality of bargaining power. While the English courts appear to have abandoned the attempt to create a doctrine of inequality of bargaining power, the Unfair Terms in Consumer Contracts Regulations SI , No. In this chapter we shall give separate consideration to each of these issues and conclude by discussing the extent to which the law of contract is concerned with the fairness of the bargain reached by the parties.
In jurisprudence , undue influence is an equitable doctrine that involves one person taking advantage of a position of power over another person. This inequity in power between the parties can vitiate one party's consent as they are unable to freely exercise their independent will. Where it is established that a plaintiff was induced to enter into a contract or transaction by the undue influence of the defendant, the contract may be rendered voidable.
The reasoning behind duress and undue influence is to protect the freedom of contracts, which has been achieved by the courts invalidating a contract that has been formed by any coercion. A person who enters into a contract is often under some sort of pressure to do so. Duress concerns consent and whether it has been vitiated thus leading to the contract becoming voidable. If a contract is voidable you are only entitled to rescission. Dimskal Shipping Co SA v ITWF: The threat to breach a contract must be a significant cause to induce the victim of duress to enter into a new contract Illustrates the causative nature — there must be a link.
Please Wait. Duress and Equitable doctrine of undue influence — whether pressure to execute a mortgage amounted to either duress or undue influence — meaning and application in law , Consideration — whether it it essential to support a document under seal, Evidence — is recital in a document conclusive evidence that such consideration has actually passed — whether proof that money did not pass infringes the statutory provision that parole evidence is not admissible to contradict or vary the document. The action is based on a mortgage conveyed to the respondent by the second appellant as surety for a debt due by the first appellant to the respondent.
The difference between duress and undue influence describes a situation where one party is forced through coercion of violence, while another is forced through the unethical actions of another party into a contract or agreement. All of these factors come into play with undue influence. Contract law is primarily concerned with the enforcement of promises and is regulated largely by the common law. Consent, although influenced, is present. Duress vs Undue Influence. Because coercion is not a benign accusation, the concept is in need of clarification and should be used carefully.
When a person is forced to do something against his or her will, that person is said to have been the victim of duress A threat of improper action to induce a person to make a contract. There are two types of duress: physical duress and duress by improper threat. A contract induced by physical violence is void.
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