duress

Duress is a vitiating factor of a contract that prevents agreement being reach between the parties to the contract, due to some unlawful threat or illegitimate business or economic being brought to bear on party to the contract. Contracts tainted by duress are said to be voidable by the innocent person and thus able to set aside the contract in its entirety. The duress is must be such a character, and the circumstances must place the person in a position where they had no other choice other than to accede to the demand or threat and enter the agreement.

Duress is a common law doctrine which involves coercion. Traditionally, duress only related to duress to the person which required actual or threatened violence to the person, therefore other forms of duress were not recognised, including duress to goods. However, recent case law suggests that the courts may be inclined to take a more flexible approach, in particular with the development of economic duress. The case of The Siboen and The Sibotre (1976) stated “that a person coerced into a contract by the threat of having his house burned down or a picture slashed could plead duress”.

Usage: The contract was set aside on the basis that agreement between the parties has been vitiated by duress.

Related Words: undue influence; restitutio in integrum; rectification; rescission; pleadings; void; voidable; ab initio; rectification; rescission; equitable remedies; court of equity; fiduicary duty; account of profits; equitable damages; constructive trust; contract; agreement; mistake.

Useful Material:

1. Economic Duress and UK Contract law