This chapter deals with the position where one party alleges that he or she entered into the contract as a result of threats made, or pressure applied, by the other party. The questions that need to be considered are as follows:
What type of threats or pressure will allow a party to escape from a contract? To what extent can threats, or pressure, other than of physical violence have this effect? The relevant question now seems to be whether there was illegitimate pressure.
In what situations may ‘economic duress’ be sufficient to affect the contract? It is important here that the party alleging duress had no real alternative to compliance.
344Can there be duress where there is a threat to perform an act that involves no breach of the criminal law or civil obligation (such as breach of contract)? The answer seems to be that there can be where, for example, the threat is being used for an improper purpose.
What are the remedies for duress? It renders a contract voidable but generally does not allow the recovery of damages.