![]() ![]() For example, if someone threatens to inflict bodily harm upon themselves if you do not agree to the terms of a contract then this may be a lawful consequence that could amount to an illegitimate pressure, and therefore, duress. Therefore, lawful consequences can still be illegitimate pressures if they are made in a threatening way intended to coerce you to sign a contract. Lawful consequences are those that do not go against the law, but which may still involve unfavourable outcomes. A threat of an unlawful consequence would be considered an illegitimate pressure that could amount to duress. Unlawful consequences are those that directly violate the law, such as a threat of violence against you or a threat to break a previous contract. However, some threats that don’t break the law could nonetheless amount to illegitimate pressure. If the threat is unlawful, that will be an example of illegitimate pressure. Where pressure results from a threat, the nature and circumstances of the threat will determine whether the pressure was legitimate or illegitimate. The Court needs to consider the particular circumstances, and the parties’ behaviour at and before the contract was signed. Therefore, while negative outcomes for a party in a contract are a red flag, this is not automatically evidence of illegitimate pressure. A contract may not result in a good outcome for everyone, nor does the law expect that. A common indication of duress is when understands the decision they are making but are nonetheless acting against their own interests.įor pressure to make a contract null and void, the Court must find that this was “illegitimate pressure”.Ī negotiation for a contract may be robust, vigorous, even potentially aggressive. That is, when another person threatens you if you don’t sign the contract. The most common form of duress is coercion. What is Duress?ĭuress, in a contractual context, refers to a situation where a person is pressured into signing a document they would not have signed without that pressure. Compelling someone to commit to a contract they would not otherwise commit to renders that contract null and void. However, the law says you cannot be bound by a contract you were induced to sign under duress. 21 October, 2021 | Nathan Tetzlaff Normally, when you place your signature on a contract you agree to be bound by the terms in that contract.
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