Duress

Contracts entered into under pressure may be invalid if consent is not freely given. However, not all pressures suffice to invalidate a contract. Duress, undue influence, and unconscionable bargains are the primary categories under which contracts may be challenged.

Duress requires improper coercion that negates consent. Ordinary economic or personal pressures are insufficient unless there is a threat of unlawful harm, violence, or criminal prosecution. Economic duress arises when illegitimate economic pressure compels agreement, but legitimate commercial pressure or inequality of bargaining power does not suffice. Courts assess factors like the availability of alternatives, protests made, and independent advice.

Undue influence may apply when one party leverages a relationship of trust to influence the other improperly. In such cases, the court may set aside the contract or order restitution.

Unconscionable bargains involve extreme unfairness, often where one party takes undue advantage of another’s vulnerability. Courts may refuse to enforce such contracts or impose equitable remedies.

Delay in seeking relief or affirming the contract after duress ceases can limit remedies. If a contract is set aside, restitution aims to restore parties to their original positions. Restitution may require accounting for benefits received or costs incurred.

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