Coercion and Undue Influence

Introduction
- S15
- S16
- Differences – concept of coercion (s15) and English common law concept of duress
- Undue influence – S16 embodied English Law
- This chapter will examine
i. 1st part
o Coercion (s15) and differences with common law duress
o Economic duress
o Effect of and relief of coercion
o Coercion (s73)
ii. 2nd part
o Undue influence under English law
o Undue influence (s16)
o Inequality of bargaining power and unconscionability
o Effect of and relief of undue influence

Coercion
- S10
o Agreement are contracts
 Made by FREE CONSENT of parties competent to contract
 Lawful consideration and with lawful object
- S14(a)
o Free consent…..not caused by (a) coercion s15
- S15
o Definition of COERCION
- Two types of coercion
o The threatening of an act forbidden by the Penal Code
o Unlawful detention of property
- Contract is voidable
o Must identify the
 Coercive act
 Prove the necessary elements
o Teck Guan Trading Sdn Bhd v Hydrotek Engineering (S) Sdn Bhd & Ors
 2 ways of committing coercion as defined by s 15
 Threatening of an act forbidden by the Penal Code
 Unlawful detention or the threatening of such to the prejudice
of any person, with the intention of causing any person to enter
into an agreement