In Atlas Express/Kafco (1989), the Tribunal found that this was an economic constraint because a small business posed a risk to a small business of violating the rules of a contract it entered into. In Universe Tankships of Monravia v. ITWF (1982), the union`s threat in the case of a ship, because the workers demanded a change in circumstances, was perceived as an economic constraint. If you invoke coercion, you may have to prove that you accepted the terms of the contract primarily because of a threat. Even if the other party did not intend to follow up with the threat, it can be considered a constraint if it had the effect of influencing you, signing. There are many types of inappropriate threats that could lead a party to enter into a contract: threats to commit a crime or an unlawful act (for example. B, assault or taking possession), bring criminal proceedings, initiate civil proceedings where a threat is made with the intention of violating a “duty of good faith and fairness to the recipient” or revealing embarrassing details about a person`s privacy. Where there is a relationship that does not result in an automatic presumption under Class 2a, but in which it can be shown that someone has shown confidence and confidence in another, a presumption of undue influence may continue to be found (for example. B employee/employer; As for cohabitation). Often it is difficult to tell if the constraint is applied.
Courts consider other factors to determine whether one party is under pressure from another party under undue pressure, including: when a person is forced to enter into a contract because of the threat of physical assault, he or she is the victim of physical duressThe risk of bodily harm that unduly leads a party to the contract. It is defined by the contractual statement (second) of Section 174: “If conduct that appears to be an expression of approval by a party who does not intend to participate in this behaviour is physically constrained, the behaviour as a manifestation of consent is not effective.” Where it is established that a party has not been able to understand the contract due to a lack of motivation, a court may decide that the contract is not applicable. This can happen when the party who signed the contract is too young or if it is unable to act mentally due to a disability or dementia. This provision prevents people who do not fully understand the terms of the contract from being exploited by an unscrupulous person. Harsh occurs when a person makes unlawful threats or other acts of coercion that induce another person to commit acts that the other person would not otherwise do. In contract law, a constraint arises when a person is forced to sign a contract under pressure. Common examples of coercion are threats to individual freedom, threats of real violence (for example. B force a person to sign a contract by force of arms) or excessive economic pressure.
In Barton v Armstrong (1976), the applicant threatened to kill the defendant if he did not sell his shares in the company in which they were both principal shareholders.