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Questions and Answers
What defines duress in a legal context?
What defines duress in a legal context?
- Pressure applied with clear contractual rights
- Legitimate pressure used to gain consent
- Illegitimate pressure or threats to obtain consent (correct)
- No pressure applied during contract formation
In the case of Barton v Armstrong, what was one key factor that justified B's reaction to A's threats?
In the case of Barton v Armstrong, what was one key factor that justified B's reaction to A's threats?
- B believed there was no risk to his safety
- A made no threats
- B took A's threats seriously and had justification (correct)
- B had compelling business reasons to agree
What was the outcome of the Barton v Armstrong case regarding the contract?
What was the outcome of the Barton v Armstrong case regarding the contract?
- The contract was upheld without changes
- The contract was modified to increase payment
- The contract was affirmed by B's actions
- The contract was set aside due to duress (correct)
What type of duress was demonstrated in North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd?
What type of duress was demonstrated in North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd?
In terms of duress, what must a victim do to have a contract set aside in a reasonable timeframe?
In terms of duress, what must a victim do to have a contract set aside in a reasonable timeframe?
What was the primary reason why H threatened to increase the price in North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd?
What was the primary reason why H threatened to increase the price in North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd?
Which factor does NOT contribute to establishing actionable duress?
Which factor does NOT contribute to establishing actionable duress?
Which is a necessary condition for a victim of duress to affirm a contract?
Which is a necessary condition for a victim of duress to affirm a contract?
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Study Notes
Duress Overview
- Duress involves the use or threat of illegitimate pressure to gain consent from another party.
- Forms of duress include:
- Physical harm, as demonstrated in Barton v Armstrong.
- Economic harm, illustrated by North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd.
- Threats related to goods, including refusing their return or destruction.
Setting Aside Contracts
- Contracts influenced by recognized forms of duress can be annulled.
- Victims of duress must act promptly to set aside the contract; delay after the influence subsides may be interpreted as contract affirmation.
Duress to Person: Barton v Armstrong
- Claim: B alleged coercion from A to enter a contract for company purchase, based on threats to B's life and family safety.
- Trial Judge's Findings:
- A made the alleged threats.
- B took them seriously, with justification.
- Compelling business reasons influenced B's decision to proceed with the sale.
- Core Issue: Whether the sale contract could be voided due to duress.
Decision and Reasoning of Barton v Armstrong
- Outcome: The contract was voided.
- Duress was actionable, as A's threats constituted illegal pressure.
- Despite compelling business reasons, duress played a significant role in B's decision, thus allowing for contract annulment.
- B communicated intent to nullify the contract in a timely manner.
Duress: Threat of Economic Harm - North Ocean Shipping v Hyundai Construction
- Background: H was contracted to build a tanker for NOS at a predetermined price in USD.
- Issue: Following a 10% devaluation of the USD, H deemed the project unprofitable and demanded a 10% price increase, lacking any contractual basis for such demand.
- Implication: Threats of economic hardship can constitute duress, undermining contractual obligation.
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