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What is the result on the contract answer the effect

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2) What is the effect of a person entering into a contract under duress? What is the result on the contract? Answer: The effect of duress is that the victim’s will is overborne, i.e., they are not genuinely consenting to the contract but rather entering into the contract as a result of the act or threat. The result on the contract is that it is voidable. The innocent party may rescind the contract. 3) In Barton v Armstrong , what points did the court make with regards to duress as a motivating factor? Answer: The court held that the threats or acts need to be a contributing factor. This means that they need to be one of the reasons for a party subsequently entering into a contract, however not the only reason. The onus of proof lies with the plaintiff to establish that the threats or acts took place. Once this is established the onus of proof shifts to the defendant. The defendant must prove that the threats or acts had no effect, i.e., that they were not a contributing factor. 4) Who may make the threat and to whom may it be made under duress to person? Answer: The threat may be made by the defendant or a person acting on behalf of the defendant. The threat may be directed against the plaintiff or a person closely related (connected) to the plaintiff; Seear v Cohen 5) In which case did Kerr J make it clear that duress to goods was sufficient to set aside a contract? Answer: The Sibeon and The Sibotre [1976] 1 Lloyd’s Rep 293 6) Does the victim of a threat to person or goods need to protest or resist on order to succeed in claiming duress? Answer: No. According to Scarman L in Universe Tankships Inc. of Monrovia v International Transport Workers’ Federation (The Universe Sentinel) [1983] : “The classic case of duress is, … not the lack of will to submit, but the
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victim’s intentional submission arising from the realisation that there is no other practical choice open to him” 7) What is ‘economic duress’? Answer: Economic Duress occurs when actual or threatened advantage is taken of a contracting party’s economic circumstances. The threats or acts are intended to damage the other party’s financial or economic interests; Crescendo Management Pty Ltd v Westpac Banking Corp , Cockerill & Dingle v Westpac 8) What was the approach that should be taken in determining whether a party is under duress according to McHugh JA in Crescendo Management Pty Ltd v Westpac Banking Corp ? Answer: The proper approach, according to McHugh JA, is not whether the victim’s consent was vitiated by the pressure, but to ask: (1) ‘ whether the pressure applied induced the victim to enter into the contract’ and (2) then ask ‘whether the pressure went beyond what the law is considers legitimate ’. 9) Give examples of what would constitute ‘illegitimate pressure’ and what would amount to overwhelming, but not illegitimate pressure?
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