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Unconscionable Conduct

The courts have recognised duress for a long time and it sets a basis for making contracts voidable. Physical duress is illustrated in the case of Barton vs. Armstrong (1973). In this case Alexander Barton commenced proceedings against Alexander Armstrong to have the contract they had entered into set aside because of Physical Duress. It was alleged that Mr Barton was threatened to be murdered by Mr Armstrong if he did not sign the contract. .
             Mr Armstrong's argument was that even though he had threatened to endanger Mr Barton's life and the safety of his family, it did not matter because Mr Barton would have signed the contract regardless of the threats. The judge held that the threats had not coerced Mr Barton as he had entered the for contract business reasons. Mr Barton appealed and the case went all the way to the Privy Court in London. The Privy Council held that the party that had been coercive had to prove that the duress was not a factor that contributed to the other party signing the contract. It was held that Armstrong had not been able to show that his coercion was not a contributing factor. The Privy Council also held that the coercion only had to be a contributing factor for entering into the agreement and not the main reason. Subsequently the fact that Barton was going to enter into the contract because of business reason anyway was not a deciding factor. So once Barton had proved there was a threat made, the presumption was that the threat made to Barton had some effect unless Armstrong could prove otherwise.
             There is also another form of duress which is called Duress of goods. Duress of goods is when a company or someone holds your possessions and to be released you have to pay money or sign a document to get them back. In order for it be duress of goods, the threat not to give the goods back must be an illegimate one, as sometimes it is quite normal for companies to hold items until they have been paid for.


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