Deck 8: Duress

Question 1

Which of the following statements is true?

A) A threat to harm a stranger to the victim can never amount to duress.
B) A threat to commit a lawful act, such as reporting a crime to the police, can amount to duress.
C) A threat to breach a contract will always amount to duress.

Answer 1

B

Question 2

A contract which is concluded through duress remains tainted throughout its duration and cannot be affirmed by the victim.

Answer 2

False

Question 3

William, a landlord, wishes to buy Melanie's eighth floor apartment in central London. The apartment is worth a hefty sum and Melanie, an elderly widow, has fallen into serious debt and is looking to sell. William offers a fair price for the apartment, but Melanie refuses it, thinking she can get more. William tells Melanie that, if she does not accept the sum, he'll send some rogues to beat up her nephew and evict him out of his apartment on the first floor. Melanie agrees to sell for the sum offered by William. If Melanie wishes to avoid the contract for duress, what must she show?

A) That the threat was a reason for her decision to contract.
B) That the threat was a significant reason for her decision to contract.
C) That the threat was the reason for her decision to contract.

Answer 3

A

Question 4

Artisan Florists contracts United Transport Services (UTS) to ship its orchids to the annual flower show in London for £2,000. A few days before the shipment is to be made, UTS realizes that it misquoted the contract price to Artisan Florists and would run a loss. UTS informs Artisan that, if the contract price is not increased by £2,000, it will not perform the contract. Artisan Florists achieve nearly half of their yearly turnover at the annual floral fair and are afraid that, if they do not consent to UTS' offer, they will be unable to find another company willing to ship the orchids in time. After the shipment has been made, UTS requests payment of the additional sum. If Artisan Florists wishes to avoid the contract for duress, what must it show?

A) That the threat was a reason for its decision to renegotiate the contract and that there was no other practicable alternative available.
B) That the threat was a significant cause or the reason for its decision to renegotiate the contract and that there was no other practicable alternative available.
C) That the threat of breach was not made in good faith.

Question 5

Consider the following two statements with respects to economic duress.
I)A contract cannot be set aside for duress if the threatening party acted in good faith or if the resulting renegotiation is fair or beneficial to the victim.
II)A contract can be set aside for duress, although the threatening party was merely correcting an unfair contract.
Which of the following statements is true?

A) Both I and II.
B) Only I.
C) Only II.
D) Neither I nor II.

Question 6

Consider the following two scenarios.
I)The ceiling in Brenda's apartment is damaged by a leak coming from an apartment above. Brenda hires a plumber, who tells her the leak is coming from Owen's apartment. Brenda tells Owen that if he does not pay for her repairs she'll take him to court. Owen agrees to pay. Two weeks later, a wall in his apartment starts rotting away as well and he discovers that the leak causing all the problems is coming from David's apartment.
II)Anglo Industries is the sole producer of aminobutanol in Europe. Anglo has concluded a one year supply contract with Bettercare, which uses the product for the production of vaccines. Anglo wishes to expand its production to vaccines as well and decides not to renew the contract unless Bettercare accepts a price increase of 35%.
In which of these cases could the contract be voidable for duress?

A) Both I and II.
B) Only I.
C) Only II.
D) Neither I nor II.