Duress and Undue Influence Flashcards

This set of flashcards covers the key legal concepts and definitions related to duress, economic duress, and undue influence as outlined in the SQE1 syllabus.

Duress

Violence or illegitimate threats or pressure that coerce a party into entering or varying a contract, making it voidable.

Economic duress

A form of duress resulting from an improper or illegitimate threat, such as a breach of contract or committing a tort, which acts as a significant cause inducing the claimant to enter the agreement.

Voidable contract

A valid and binding contract that remains in effect unless and until it is rescinded by the innocent party.

Rescission

The sole remedy for duress and undue influence, which involves setting aside the contract and returning both parties to their pre-contractual positions.

Affirmation

A bar to rescission that occurs when an innocent party treats the contract as ongoing after the illegitimate pressure or influence has ceased.

Undue influence

Influence that goes beyond what is regarded as acceptable, or where one party in a position of influence takes unfair advantage of that position over another.

Actual undue influence

Undue influence that is proved on the facts of a specific case, such as a party signing a contract under the threat of legal action.

Presumed undue influence

A presumption raised when there is a relationship of trust and confidence between parties and the transaction in question calls for an explanation.

Fiduciary relationship

Categories of relationships, such as solicitor and client or doctor and patient, where the law irrebuttably presumes one party places trust and confidence in the other.

Constructive notice

A principle where a creditor is tainted by a third party's undue influence if it was put on inquiry and failed to take reasonable steps to ensure the surety understood the implications of the agreement.

Put on inquiry

The condition where a creditor is alerted to potential wrongdoing because the relationship between the debtor and surety is non-commercial and the loan is not for their joint benefit.