When entering into a contract, it is important that both parties do so willingly and of their own free will. However, there are circumstances where one party may feel under duress or may be influenced to the point where their consent is no longer voluntary. In such cases, the contract may be considered voidable or even void. In this article, we will explore the effect of duress and undue influence on a contract.

Duress occurs when one party enters into a contract under the threat of harm or coercion. In such cases, the party may feel that they have no choice but to agree to the terms of the contract in order to avoid the threatened harm. For example, if a business owner is threatened with physical harm if they do not sign a contract with a particular supplier, the contract would be considered to have been entered into under duress.

Where a contract is found to have been entered into under duress, the innocent party may seek to have the contract set aside or rescinded. This means that the contract is considered to be void, and both parties are released from their obligations under the contract.

Undue influence, on the other hand, occurs when one party exerts a significant amount of pressure on the other party to enter into a contract. This may involve taking advantage of a position of trust or authority over the other party. For example, if a financial advisor persuades a vulnerable client to invest in a high-risk scheme without fully explaining the risks involved, this would be considered undue influence.

Where a contract is found to have been entered into under undue influence, the innocent party may also seek to have the contract set aside or rescinded. In addition, they may be entitled to damages for any losses suffered as a result of the undue influence.

It is important to note that proving duress or undue influence can be difficult. In order to prove duress, the innocent party must show that there was a threat of harm and that they had no reasonable alternative but to enter into the contract. To prove undue influence, the innocent party must show that the other party exerted a significant amount of pressure and that the contract was not entered into freely and voluntarily.

In conclusion, the effect of duress and undue influence on a contract is significant. If a contract is found to have been entered into under duress or undue influence, it may be considered voidable or even void. It is important that parties to a contract enter into it willingly and of their own free will, without any pressure or coercion from the other party.