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Contracts effected with a bank on the basis of coercion or pressure: grounds for judicial intervention

Journal Article


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Abstract


  • This article critically examines duress as a doctrine rclied upon by guarantors or surcties to sct aside

    contracts of guarantees (the most common types of bank sccurity) they have given with inadcquatc

    undcrstanding or informcd consent. The articlc discusscs duress as "a form of coercion or pressure"

    which can impair any contractual assent resulting in a guarantcc being vitiated. In gencralterms though,

    the defence of duress is concerned mainly with the issue of whether the guarantor was placed under

    unacceptable pressure, or under an illegitimate threat. Common law and equitable eonccpts in rcspeet

    of duress apply equally to both guarantees and contracts generally. Nevertheless, sincc guarantees

    frequently involve persons who have close relationships to each other, there is probably a greater risk

    of duress being associated with guarantees than with other kinds of commercial contracts.

Publication Date


  • 2012

Citation


  • C. Y. C. Chew, 'Contracts effected with a bank on the basis of coercion or pressure: grounds for judicial intervention' (2012) 27 (11) Journal of International Banking Law and Regulation 463-468.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1656&context=lawpapers

Ro Metadata Url


  • http://ro.uow.edu.au/lawpapers/644

Number Of Pages


  • 5

Start Page


  • 463

End Page


  • 468

Volume


  • 27

Issue


  • 11

Place Of Publication


  • United Kingdom

Abstract


  • This article critically examines duress as a doctrine rclied upon by guarantors or surcties to sct aside

    contracts of guarantees (the most common types of bank sccurity) they have given with inadcquatc

    undcrstanding or informcd consent. The articlc discusscs duress as "a form of coercion or pressure"

    which can impair any contractual assent resulting in a guarantcc being vitiated. In gencralterms though,

    the defence of duress is concerned mainly with the issue of whether the guarantor was placed under

    unacceptable pressure, or under an illegitimate threat. Common law and equitable eonccpts in rcspeet

    of duress apply equally to both guarantees and contracts generally. Nevertheless, sincc guarantees

    frequently involve persons who have close relationships to each other, there is probably a greater risk

    of duress being associated with guarantees than with other kinds of commercial contracts.

Publication Date


  • 2012

Citation


  • C. Y. C. Chew, 'Contracts effected with a bank on the basis of coercion or pressure: grounds for judicial intervention' (2012) 27 (11) Journal of International Banking Law and Regulation 463-468.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1656&context=lawpapers

Ro Metadata Url


  • http://ro.uow.edu.au/lawpapers/644

Number Of Pages


  • 5

Start Page


  • 463

End Page


  • 468

Volume


  • 27

Issue


  • 11

Place Of Publication


  • United Kingdom