Overview
This podcast discusses the contract law defenses of duress and undue influence, outlining their definitions, distinguishing features, relevant relationships, and legal consequences. Listeners will learn to identify improper threats and unfair persuasion, and understand when these defenses allow contracts to be voided or rescinded.
Defining Duress
- Duress is a defense preventing enforcement of contracts obtained through threats or coercion.
- It protects parties from being forced to agree to contracts against their will.
- Duress involves improper threats that undermine voluntary assent.
Types and Effects of Duress
- Physical compulsion, such as threats of violence, makes a contract void.
- Lesser forms of threat may render a contract voidable, allowing the victim to rescind it.
- Not all threats are considered improper; only those that cross a legal or ethical line qualify.
Defining Undue Influence
- Undue influence protects parties against contracts formed by unfair persuasion rather than explicit threats.
- It often arises in relationships where trust or dependency exists, such as between caregiver and patient.
- The focus is on whether one party's will was overborne by the influence of another.
Relationships and Contexts Leading to Undue Influence
- Special relationships, such as those involving dependency or trust, may give rise to claims of undue influence.
- Typical relationships include guardian-ward, attorney-client, or doctor-patient scenarios.
Rescinding Contracts Based on Defenses
- Both duress and undue influence are defenses enabling a party to avoid or rescind an otherwise valid contract.
- Contracts formed under physical compulsion (duress) may be declared void from the start.
- In other instances, contracts are voidable and can be rescinded by the affected party.
Key Distinctions Between Duress and Undue Influence
- Duress involves improper threats or coercion; undue influence centers on unfair persuasion.
- Physical compulsion is unique to duress and results in a void contract, not just voidable.
- Undue influence depends on the existence and exploitation of a relationship of trust.
Recommendations / Advice
- Carefully examine the nature of threats or persuasive tactics in contract formation for possible duress or undue influence.
- Consider the relationship between the parties when assessing whether undue influence may have occurred.
- Legal remedies may vary depending on whether a contract is void or voidable due to these defenses.