Definition of Duress: In legal contexts, duress can be described as a wrongful threat that overcomes an individual's free will.
There are different terms associated with duress (improper and wrongful); the choice of term may depend on preference of authority (professor, supervisor, or court).
Overcoming free will indicates a requirement for proof that the victim would have rejected the contract but for the threat.
Key Consideration: Both parties involved in a contract are entitled to free will.
If one party is coerced into agreement, the other’s desires must also hold value.
Contractual Agreement: When an individual agrees to a contract under duress, it often stems from a desire to avoid threatened harm.
Having reasonable alternatives can negate claims of duress.
Legal options might be available as an alternative to accepting terms under duress.
Such options include filing lawsuits or seeking injunctions to prevent breaches.
Specific example: In Austin Instrument, a subcontractor threatened not to supply parts, potentially leading to serious penalties for the contractor based on government deadlines.
Evaluation of Alternatives:
Suffering from the threatened harm may not be a legitimate alternative.
For example, if someone is threatened with financial loss, finding a way to cover the temporary loss may sometimes be a reasonable alternative.
Duress can also occur through actions of third parties, mirroring the concept of misrepresentation by a third party.
The assent to a contract under threat does not reflect a mutual benefit.
Court Considerations: A party can avoid the contract if criteria are met:
The other party relied on the contract.
The reliance was in good faith.
The other party had no reasonable knowledge of the duress.
Physical compulsion is direct pressure applied to a party, and actions taken under such compulsion typically lack legal standing.
Types of Mistakes:
Basic assumption mistake: the parties may misinterpret contract fundamentals.
Misunderstanding: involves confusion regarding contract definitions.
Mistake of integration: signing based on assumed accuracy of written terms, where errors allow court intervention for reform.
Mistakes of judgment: regret after contract signing lacks legal remedy.
A party cannot claim consideration if they are bound to perform a duty already owed.
There is a similar concept between duress claims and the erosion of the pre-existing duty rule—in both cases, determining acceptable boundaries between coercion and legitimate adjustments to contracts is complex.