Duress Contract Law Canada

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Duress in contract law is a legal term used to refer to a situation where a person is forced or coerced into entering into a contractual agreement against their own will. In Canada, duress is considered to be a valid defense in contract disputes, and the law provides several criteria that must be met for a duress claim to be accepted.

The Canadian legal system considers duress to be a form of illegitimate pressure that can be imposed by one party on another to force an agreement. The pressure can come in different forms, including threats, violence, blackmail, or any other form of coercion aimed at frustrating the free will of the victim. It is important to note that not all forms of pressure amount to duress in the eyes of the law. For instance, commercial pressure like a deadline demand is typically not considered duress.

For a duress claim to be accepted by a Canadian court, the victim must demonstrate that they have been subject to illegitimate pressure that contributed to their agreement to the contract. The court must be convinced that the victim would not have entered into the agreement if the pressure had not been exerted. Additionally, the victim must show that the pressure was against public policy and that the contract is significantly unfair and oppressive.

Duress in contract law can be used as a defense strategy in both criminal and civil legal proceedings. In criminal cases, the duress defense can be invoked if a person committed a crime under the threat of violence or death. The defendant must convince the court that they had no other option but to commit the crime to save their life or the life of a third party.

In civil cases, the duress defense can be used when a party is forced to sign a contract under threat. For instance, if an employer threatens to fire an employee if they do not sign a non-compete agreement, the employee could argue that the agreement was signed under duress.

Finally, it is important to note that duress does not always render a contract void or unenforceable. A court may order specific performance of the contract, or it may consider the agreement enforceable but subject to modification.

In conclusion, duress in contract law is a complex legal issue that requires a thorough understanding of the law and the circumstances surrounding the agreement. If you find yourself in a situation where you have entered into a contract under duress, it is important to seek legal advice immediately to determine your legal options.