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Saturday, 10 June 2017

Business Law Assignment: Duress and Undue Influence

1. What do we mean by “coercion of the will vitiating consent”?

2.         What are the four elements identified by Lord Scarman that characterize       economic duress?

3.         Describe some of the typical relationships that might suggest undue   influence being used to obtain an advantage.

4.         What is the remedy available where a person has been induced into a            contract by undue influence?

5.         Gilbert owns a haulage company with special trucks designed to carry            toxic waste.  He has a licence to remove, carry and dispose of agricultural       chemicals and waste oil.   Oswald has a landscaping business and hires    cutting and other machines.  The disposal of waste is charged at £1.50 per    Kg.  One of Gilbert’s trucks has picked up 200 Kg of waste and Gilbert has             now told Oswald that if he will not take loads less than 350kg or he must   charge £3.00 per kg.  Oswald refuses but Gilbert says that if he does not             agree that he will tell the Health and Safety Executive that Oswald’s     company is illegally storing toxic waste on his property.    Oswald        reluctantly agrees to pay £600 for the waste to be taken away. He now     wishes to recover what he calls a £300 overpayment. Advise Oswald

6.         Ronnie and Reggie own a nightclub in West London. Across town Charlie      and George own another nightclub.  Ronnie and Reggie have decided to expand their business and wish to acquire a new club.  Ronnie offers to by     Charlie and George’s club for £100,000 but George refuses.  Ronnie says       to George “I am doing you a favour offering to buy you out, do you         know how many clubs have burnt down in the last couple of months?”

7.         Jamo has stood as guarantor for a loan taken out by his brother Billy.  The    loan is for £75,000 and Billy’s business is insolvent and has ceased          trading.  On Thursday the loans manager of Westchester Bank calls Jamo         and tells him that the bank is foreclosing on the loan and that he must pay     it by the following Monday.  Jamo tells him he does not have that kind of           money to hand.  The loans manager says that the best thing to do is allow        the bank to secure the loan on a charge on his house and Jamo agrees.            Three months later the bank calls Jamo and tells him that he must pay a         monthly fee on his account for management of the loan.  Six months      later after Jamo has been unable to pay the bank charges they apply to           take possession of his house.     
                                                                                                Advise Jamo
8.         When Eric was 22 years old he joined the Sacred Church of the Lord.  The    church required its members to pay 15% of their income into the church     as a tithe and the Bishop of the Church arranged for a regular payment    from Eric’s bank account .   Eric got married when he was 28 and he and       his wife left the church six years ago.  He now wants to recover his       and his wife’s money.  Will he be successful?

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