Contract Law: Coercion and Undue Influence

A threat to bring a civil action is considered unlawful.

Duress involves a close relationship between parties.

Undue influence is a form of improper pressure that is more subtle than duress.

In cases of duress, the threatened party must show that they have no reasonable alternative available other than succumbing to the threat.

Damage in the context of duress refers to physical harm only.

The party alleging duress must show that they have become subject to obligations that they would have incurred anyway.

Coercion operates on the mind of the victim by forcing him/her to choose between entering the contract or benefiting from a reward.

The more reasonable the fear, the greater will be the reluctance of the court to accept that it actually induced the contract.

The threat of dismissal must be expressed to be considered a threat.

A threat to the respondent's pet can be considered a threat to their property.

If there is no protest at the time of payment or entry into the contract, it is indicative of free consent.

The threat can be distant or remote to be considered a threat.

Undue influence can be proven by the party who was aggrieved.

The remedy of restitutio in integrum is only available to the guilty party.

If the innocent party chooses to rescind the contract, they must communicate their decision to the other party.

Upon receipt of notice, the contract continues to be in effect.

The innocent party is not bound by the terms of the contract if they choose to uphold it.

The restitutio in integrum remedy only applies to contracts.

Intentional misrepresentation renders a contract voidable.

Negligent misrepresentation can lead to a claim for damages.

Innocent misrepresentation allows for a claim of damages.

A misrepresentation must be fraudulent to be considered intentional.

All types of misrepresentation render a contract void.

Misrepresentation can be made with the intention of persuading the other party to conclude the contract.

A false statement of law made by one party to another before or at the time of the contract is considered misrepresentation.

Misrepresentation requires a false statement of fact made by a third party to the contract.

A false statement of fact can be made through active concealment or implied from conduct.

Designed concealment, or intentional concealment of information, is not considered misrepresentation.

The person making the misrepresentation must have the intention of persuading the other party to conclude the contract.

The other party must believe the facts to be as represented and conclude the contract on the basis of the misrepresented facts for it to be considered misrepresentation.