BUS 393 Lecture Notes - Lecture 3: Undue Influence, Unconscionability

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 393
• Professor: Shafik Bhalloo

Document Summary

Duress and undue influence involve disputes related to the formation of contract. Duress: occurs when the free will to bargain is lost because coercion, involving threat of violence, imprisonment, scandal, damage to property, or even financial pressure is exercised by one of the parties. Ie. someone threatening to harm your family to force you to enter into a contract. Ie. if you sold your car to a under threat, you could sue to have it returned (duress). But, if a resold it to b, you can"t force b to give it up. Your only recourse is against a (the person who threatened you) for damages. Duress can include: threat of violence, threats against property, economic duress. Ex. landlord put pressure on a tenant to sign a lease with unfavourable provisions. The tenant was taking over a lease from the prior tenant who left without paying a few months rent.