Duress under English law

Definition and Elements of Duress:
Duress in contract law refers to illegitimate pressure applied by one party on the other, forcing them to enter into a contract against their true intentions. For duress to be established, the following elements must be satisfied:
a) Illegitimate Threat: The party exerting pressure must make a threat that is either unlawful or morally wrong. It could involve physical harm, economic loss, or damage to reputation.
b) Coercion: The threat must have induced the victim to enter into the contract. There must be a causal connection between the threat and the victim's consent to the contract.
c) Absence of Reasonable Alternative: The victim must not have had any reasonable alternative but to agree to the contract. If a reasonable alternative was available, the claim of duress may be weakened.
Types of Duress:
English contract law recognizes two main types of duress: physical duress and economic duress.
a) Physical Duress: Physical duress involves the use or threat of physical force or violence against a person or their property. For example, holding someone at gunpoint to force them to sign a contract would constitute physical duress.
b) Economic Duress: Economic duress occurs when one party exploits the financial vulnerability of the other party to obtain an unfair advantage. This may involve threats to terminate an existing contract, withhold payment, or impose unjustified economic pressure.
Remedies for Duress:
If a contract is found to be entered into under duress, the coerced party has the option to rescind the contract. Rescission allows the party to set aside the contract, returning the parties to their pre-contractual positions. The party seeking rescission must act promptly and communicate their intention to rescind the contract as soon as the duress is lifted.
In addition to rescission, the coerced party may also be entitled to claim damages for any losses suffered as a result of the duress. The damages aim to compensate the victim for any harm caused by the other party's wrongful conduct.
Limitations and Defenses:
There are certain limitations and defenses associated with the principle of duress in English contract law.
a) Self-Induced Duress: If a party voluntarily places themselves in a position of duress, such as by engaging in illegal activities, they may not be able to claim duress as a defense.
b) Delayed Rescission: If the victim of duress unduly delays in seeking rescission, they may be deemed to have affirmed the contract, thereby losing their right to rescind.
c) Partial Duress: In some cases, the duress may only affect a specific term or provision of the contract. In such instances, the court may sever the offending provision and enforce the remainder of the contract.