Chapter 14 – Vitiating Factors: Duress and Undue Influence
Vitiating factors are things that undermine a contract. They show that someone’s
agreement was not made freely. If proven, the contract becomes voidable, which
means the innocent party can cancel it.
Duress
What is duress?
Duress happens when one person uses illegitimate pressure to force another person
into a contract.
In simple terms:
Did they genuinely agree, or were they pressured into it?
Types of Duress
A. Duress to a person
- Includes threat of violence or harm
- Very easy to prove as the violence is clearly illegitimate
- Barton v Armstrong
B. Duress to goods
- Threats against someone’s property
- E.g. Refusing to release goods unless a contract is signed
C. Economic duress
- This is when one party uses financial pressure that is unfair and illegitimate
Examples
- Threatening to break a contract at the last minute
- Demanding more money before finishing work
- Using a business’s desperate situation to force a bad deal
Vitiating factors are things that undermine a contract. They show that someone’s
agreement was not made freely. If proven, the contract becomes voidable, which
means the innocent party can cancel it.
Duress
What is duress?
Duress happens when one person uses illegitimate pressure to force another person
into a contract.
In simple terms:
Did they genuinely agree, or were they pressured into it?
Types of Duress
A. Duress to a person
- Includes threat of violence or harm
- Very easy to prove as the violence is clearly illegitimate
- Barton v Armstrong
B. Duress to goods
- Threats against someone’s property
- E.g. Refusing to release goods unless a contract is signed
C. Economic duress
- This is when one party uses financial pressure that is unfair and illegitimate
Examples
- Threatening to break a contract at the last minute
- Demanding more money before finishing work
- Using a business’s desperate situation to force a bad deal
