Duress

Where duress is established the common law permits the victim to escape their contractual obligations by rendering the contract voidable. To be established one of the contracting parties must exert 'illegitimate' pressure on the weaker party which induces the weaker party to enter into the contract. Duress might relate to the person involved (eg, threatenening to kill them if they do not enter into the contract), to the property of the other person (eg, threatening to burn down their house if they do not enter the contract) or may take the form of 'economic' duress. Economic duress might exist, for example, where the dominant party threatens not to perform a contract - although not all such threats will constitute duress - in particular, if other options were available to the weaker party (purchasing the product elsewhere, seeking legal remedies) duress will not be established.

Statute now provides remedies for duress in limited cases. In relation to consumer contracts the Trade Practices Act 1974 (Cth) and equivalent state and territory legislation prohibits corporations using 'physical force or undue harassment or coercion' in connection with the supply (or possible supply) of goods or services - or payment of goods or services.

Detailed discussion forthcoming