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Questions and Answers
What defines duress in a legal context?
What defines duress in a legal context?
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?
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?
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?
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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?
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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?
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Which factor does NOT contribute to establishing actionable duress?
Which factor does NOT contribute to establishing actionable duress?
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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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Description
Explore the concept of duress in business law with a focus on how illegitimate pressure can impact consent between parties. This quiz examines key cases and examples related to duress, including physical and economic harm. Perfect for students of Principles of Business Law!
