Law of Contract lecture on undue duress PDF

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lecture notes on duress and undue influence....

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Law of Contract Undue influence Doctrine is an old equitable one. it considers if a person’s decision to enter into a contract been influenced or undermined by another person, abdicating your decision-making powers to someone else. Where it has been obtained by improper pressure, doesn’t need to make any threats. The contract would be voidable if undue influence is found. Barclays Bank v O’Brien A person who has been induced to enter into a transaction y the influence of another… is entitled to set that transaction aside. There are two types of influence; actual undue influence (class 1), presumed undue influence (class 2). Under class 2 there can be 2A protected relationships of trust and confidence, 2B de facto relationship of trust and confidence. Type a is more likely to be pressure considerable like duress. Presumed undue influence is subtler, complainant has to show that there is a relationship of trust and confidence between df and cl. Then if that is established it is presumed that one person has influence over the other. Law recognises certain relationships are ones of trust and confidence, unrebuttably. Doctor patient, parent child, solicitor client, spiritual advisor disciple, guardian ward, trustee advisory. Can presume solicitor would advise you in your best interest. Don’t have to prove anything. Under class 2B, they must prove the relationship on the facts as being one of trust and confidence. It is then for alleged wrongdoer to prove that they didn’t exert influence and they entered into the contract for their own reason. zamet v Hyman in the case of an engaged couple, it should be proved, as distinct from being presumed that the impugned transaction resulted from an abuse of trust and confidence. Relinquished anything she would inherit for 600 pounds in will. Didn’t make another will thus original one in place. Women didn’t know of is fortune. Knows nothing. Morris never got round to making another will. Document giving up right was thought to be against her own free will. There was trust in relationship and she wanted to marry him, he was protective of her. She didn’t know what she was signing. Morris should’ve explained the transaction to her. Must be proven in case of an engaged couple, 2B. Credit Lyonnais v Burch Relationship of employer and employee, 18yr old employer 28, trusts employer. They worked closely together, she visits his house in London and villa in Italy on occasions. She had acquired mortgage and small flat. Worked in demanding job and had no time outside of work. Company already overdrawn, wanted security, employer asked employee to act as guarantor using her flat as security for unlimited all monies guarantee making her liable for all his debts. She signed documents in his presence, was not informed of how indebt the company was or that she was security of it, bank solicitors had written to her wit this info and advised her to get financial advice. Company went bust, debts 60,000. Employee left to cover it must sell flat. Judge at county curt dismissed this transaction. Telling her to get independent advice has been held to allow a lender to secure their transaction, but

the transaction was so disadvantageous that no one would’ve entered into it of own accord. In circumstance bank should’ve ensured she had gained legal advice. Royal Bank of Scotland v Etridge- leading case in this area Class 1- both influence and fact it has been exerted undue will be affirmatively proven. May be proven through presumption Class 2- A influence will be presumed because of the protected relatiship, the question of whether it was undue will have to be proved B prove a relationship of trust and confidence and influence may be presumed- prove that the influence was in fact undue. Can bring evidence that there was no trust or confidence and influence wasn’t used....