Principle: The law of economic duress comes into play when the apparent consent of the plaintiff was induced by pressure exercised by the defendant. As a result, such consent is revocable. Facts: Sebastian and Fernando enter into a contract to collectively buy a piece of property located in Vijayanagar. At an advanced stage of the sale transaction, Fernando suddenly hits a financial crisis and is in no position to uphold his part of the promise under the contract. He therefore, decides to repudiate the contract leaving Sebastian stranded. When Sebastian files for enforcement, Fernando defends that the agreement was signed under economic duress since Sebastian was wealthier than him. Is this a valid defence? (a) No, since the mere fact that Fernando hit a financial crisis does not result in a situation which attracts the law of economic duress. (b) No, since the mere fact that Sebastian was wealthier than Fernando does not make the law of economic duress come into play (c) Yes, since Sebastian being richer among the two has wielded undue-influence over Fernando. (d) Yes, since taking into consideration their financial conditions no proposition involving the two spending equal amounts of money on a piece of property can be justifiable.
Posted on: Fri, 11 Apr 2014 06:42:18 +0000
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