duress and undue influence cases

• What are the types of duress mentioned?

  Physical duress, duress to property, economic duress
• What is the significance of Barton v Armstrong (1976)?

  • Armstrong used threats to pressure Barton.
  • Barton sought to rescind the contract.
  • The Privy Council ruled the contract voidable.
  • Threats need not be the only reason for signing.
• What did the Privy Council rule in Barton v Armstrong regarding duress?

  Contract was voidable due to duress
• What must a victim show to rescind a contract due to duress?

  Illegitimate pressure was a reason for entering
• What was the outcome of The Law Debenture Corp v Ukraine [2023]?

  • Ukraine borrowed $3 billion from Russia.
  • Ukraine claimed duress due to threats.
  • UK Supreme Court allowed trial for physical threats.
  • Economic pressure alone was insufficient for duress.
• What is the ruling regarding duress to property in Skeate v Beale (1840)?

  Duress to goods does not void a contract
• What is the principle established in Occidental Worldwide Investment Corp. v Skibs A/S Avanti (1976)?

  • Economic duress can render a contract voidable.
  • Mere commercial pressure is insufficient for duress.
  • Occidental's actions did not constitute duress.
• What did the court conclude in The Siboen and The Sibotre [1976] regarding economic duress?

  Economic duress can make a contract voidable
• What was the ruling in Universe Tankships v ITWF (The Universe Sentinel) (1983)?

  • Payment made under economic duress was voidable.
  • Illegitimate pressure left no practical choice.
  • Money could be recovered due to duress.
• What was the outcome of Pakistan International Airline Corp. v Times Travel (UK) Ltd [2021]?

  Threat to terminate agreement was not illegitimate
• What must be shown to establish economic duress according to Pao On v Lau Yiu Long [1980]?

  1. Claimant was under pressure to enter.
  2. Pressure was illegitimate.
  3. No reasonable alternative but to comply.
• What is the significance of Atlas v Kafco (1989) regarding economic duress?

  • Contract may be voidable for economic duress.
  • Illegitimate pressure must leave no reasonable alternative.
  • Kafco was forced to agree to higher charges.
• What is the principle established in Allcard v Skinner [1887] regarding undue influence?

  • Undue influence can arise from trust relationships.
  • Donations made under undue influence can be set aside.
  • Court recognized imbalance of power in relationships.
• What did the House of Lords rule in Barclays Bank v O'Brien [1993] regarding undue influence?

  • Undue influence can be presumed in domestic relationships.
  • Lenders must ensure consent is freely given.
  • Barclays Bank was liable for not investigating.
• What is the ruling in Bank of Credit & Commerce International SA v Aboody [1990] regarding undue influence?

  • Banks may be liable for undue influence.
  • Liability arises if the bank is aware of undue influence.
  • Consent must be freely given by the borrower.
• What is undue influence in legal terms?

  Influence that removes free will
• In what type of relationships does undue influence typically arise?

  Relationships of trust and confidence
• What was the ruling in the case of Skinner and Allcard regarding donations?

  Donations were set aside due to undue influence
• What must be shown for undue influence to be established?

  Influence must be illegitimate and overpowering
• In Bank of Credit & Commerce International SA v Aboody, who was pressured into signing the mortgage?

  1. Aboody
• What did the Court of Appeal rule regarding the bank's liability in Aboody's case?

  The bank could be liable for undue influence
• What must a bank do to avoid liability for undue influence?

  Ensure independent advice for vulnerable parties
• What did the court find regarding the bank's knowledge in Aboody's case?

  The bank had no knowledge of undue influence
• What was the outcome of Nature Resorts Ltd v First Citizens Bank Ltd regarding undue influence?

  No undue influence was found
• What must be present for undue influence to be presumed in commercial transactions?

  A relationship of trust and unexplained transaction
• In Yerkey v Jones, what did the court rule regarding the mortgage agreement?

  The mortgage could be set aside due to undue influence
• What did the court find about Mrs. Yerkey's situation?

  She was in a vulnerable position without advice
• What was the ruling in National Westminster Bank Ltd v Morgan regarding undue influence?

  Undue influence could arise in marital relationships
• What did the House of Lords emphasize in Morgan's case?

  The bank must ensure independent advice is given
• What must a party show to rescind a contract based on undue influence?

  The transaction was not entered voluntarily
• In Lloyds Bank Ltd v Bundy, what was the court's finding regarding Mr. Bundy's understanding?

  He did not fully understand the transaction
• What was the outcome of the Bundy case regarding the mortgage and guarantee?

  They were set aside due to undue influence
• What must a bank ensure when dealing with vulnerable parties?

  That they fully understand the transaction
• In Turkey v Awadh, what did the court find regarding the relationship between Khalid and his daughter?

  It was one of trust and confidence
• What did the court conclude about the transaction in Turkey v Awadh?

  It was explicable by family dynamics
• What is the doctrine of notice in relation to undue influence?

  A lender must ensure independent advice
• What did the House of Lords rule in Barclays Bank v O'Brien regarding Mrs. O'Brien?

  She was under undue influence from her husband
• What must a lender do when aware of potential undue influence?

  Ensure the party receives independent legal advice
• What was the outcome of Mrs. O'Brien's mortgage agreement?

  It was set aside due to undue influence