ABSTRACT

The previous chapter deals with the situation where a party may be afforded relief on the basis that entry into the contract was induced by misrepresentation. This chapter examines the situations in which the law gives relief to a person who has entered into a contract because of some improper pressure. It is important to note at the outset that the pressure must be ‘improper ’. People may be compelled to enter into unfavourable transactions by a number of factors: the demands of their own circumstances; the lack of an alternative source for the benefits they seek; or, more generally, the bargaining strength of the other party. It would be contrary to the principles underlying contract law to allow a party to escape from the consequences of a transaction freely entered into merely because of restraints imposed on the exercise of freedom of choice. However, there are circumstances in which the pressure is such that the victim cannot be said to have acted freely. In certain cases of improper pressure, the law will afford relief.