ABSTRACT

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. The original common law doctrine recognised only physical pressure as sufficient to amount to duress. This required actual or threatened violence to the victim. The Privy Council made it clear that it is not necessary to show that the duress was the sole cause of the victim's entry into the contract. The category of spiritual advisor and disciple is also of considerable importance within the South Pacific region, where the church is such a powerful force. One view, espoused by Lord Denning, is that there is a wide doctrine of unconscionability, based on inequality of bargaining power, and that duress, and undue influence are just part of this wider concept of unconscionability. The Commission considered that most Papua New Guineans understood little contract law and entered contracts without knowing the terms and conditions.