Question

Part 7 -  Undue Influence / Duress

11.  Johnny opened up a jewelry store. Shortly after opening a couple of guys came in the store and told him they needed to use his business to have "merchandise" shipped to him. The merchandise belonged to the men and the boxes contained drugs and handguns. They needed his store as a front. The men told him for his cooperation they would pay him $2,000/month. They also told him if he refused or if any of their merchandise turned up missing, his store would be burned to the ground. They told Johnny the deal was non-negotiable. Does this illustrate "duress" or "undue influence" or both? Explain the difference between duress and undue influence.

12. Bobby is 45 years old and has never married. His entire life has been spent living with his parents on the family farm. After his father died, his mother became more and more dependent on her son, Bobby, to help her out. First she signed a Power of Attorney allowing Bobby to do all her banking.

Over time Bobby suggested his mother put the family vehicles in his name ("Mom, it will be easier, okay?") especially since she did not drive much anymore. Bobby also suggested that his mother sign a deed that put the family farm (600 acres / $9,000/ acre / $5.4M) in his name alone. ("Mom, it will be easier, okay?")

When Bobby's mother dies his brothers and sisters are shocked to learn the family farm and all their mother's property is owned by Bobby. Is this a situation that is more likely "undue influence" or "duress"? Explain why.

Answer 1

Duress mean, it is a possible defence to a criminal charge such as assault or affray, where the defendant argues that they were forced to act in this way by someone else under the threat of death or serious harm to the person, their family or dependants.

undue influence mean, it In contract law, a defense that can be used by a party to argue against the formation of a binding contract between two parties. The use of undue influence by one party over another puts the free will of one of the parties entering the contract into question, and therefore leads to the contract being unenforceable and voidable by the victim party. To prove undue influence, a party must show that one party to the contract is a person with weaknesses which make him likely to be affected by such persuasion, and that the party exercising the persuasion is someone in a special relationship with the victim that makes the victim especially susceptible to such persuasion.

Duress vs Undue Influence Comparison Table

	Duress	Undue Influence
Short Description	A lesser party is forced to enter into an agreement by a dominant party using violence	A dominant party uses their position to exploit a lesser party with threat of legal action if they fail to sign an agreement
Freedom to Consent	There is no freedom for the weaker party to consent, they act because no reasonable alternatives offered to them	The weaker party has some freedom to refuse consent, but due to unethical influence, they cannot exercise it fully
The Fate of the Contract	The court terminates any agreement signed under duress and takes action against the offenders	An agreement entered under it is not legally binding and can be set aside by the wronged party should they wish it

Conclusion of the Main Difference Between Duress vs Undue Influence

An agreement that is made using duress or undue influence is not recognized by law and should be declared null and void. It is important to understand the difference between duress vs. undue influence. This knowledge can help save your life, protect you or your property from harm, and help you to avoid any legal ramifications at a later date