SQE1 · Contract · FLK1

Duress, undue influence & mistake

Duress, undue influence and mistake are vitiating factors that can make a contract void or voidable where genuine consent was absent. They are tested on facts involving improper pressure, relationships of trust, or fundamental errors.

What "Duress, undue influence & mistake" covers

  • Duress to the person, goods, or economic interests requires illegitimate pressure that was a significant cause leaving the victim no practical choice.
  • Lawful-act duress is exceptional and requires bad faith or unconscionable exploitation (Times Travel).
  • Actual undue influence is proved by overt improper pressure; presumed undue influence arises from a relationship of trust and confidence plus a transaction calling for explanation.
  • A third party (e.g. a bank) may be fixed with notice of undue influence and must take reasonable steps, such as ensuring independent advice (Etridge).
  • Common mistake (both parties share a fundamental false assumption) may void the contract only where the subject matter or a fundamental quality is affected.
  • Unilateral mistake as to terms or identity can void a contract, especially in face-to-face versus written dealings.
  • The remedy for undue influence and duress is rescission, subject to the usual bars.

Key cases & statutes

The authorities and provisions most likely to matter for this subtopic:

Barton v Armstrong [1976]Pao On v Lau Yiu Long [1980]Universe Tankships v ITWF (The Universe Sentinel) [1983]Pakistan International Airline v Times Travel [2021]Royal Bank of Scotland v Etridge (No 2) [2001]Bell v Lever Brothers [1932]Great Peace Shipping v Tsavliris [2002]Cundy v Lindsay (1878)

How it's tested in SQE1

SQE1 uses single best answer questions: a short factual scenario, one precise question, and five options of which only one is the best answer on the law applied to the facts. For duress, undue influence & mistake, expect to be asked what the correct legal position is, what a party may or must do, or which outcome follows — with more than one option looking arguable. Reading the facts carefully and eliminating the near-misses is the skill that earns the mark.

Where candidates lose marks

  • Forgetting that economic duress needs illegitimate pressure and the absence of any practical alternative.
  • Assuming a relationship of trust alone proves undue influence without a transaction calling for explanation.
  • Overstating common mistake, which is narrow and rarely voids a contract merely because it is a bad bargain.

Learn this subtopic in the course

A video lesson, notes and exam-style practice on duress, undue influence & mistake.

FAQ

Is duress, undue influence & mistake tested on SQE1?

Yes — duress, undue influence & mistake is part of the SQE1 Contract syllabus (FLK1) and can appear in single best answer questions.

How is duress, undue influence & mistake examined in SQE1?

SQE1 tests it by application: you're given a realistic scenario and choose the single best answer from five options. The focus is on using the law correctly, not reciting it — knowing the leading authorities (Barton v Armstrong [1976], Pao On v Lau Yiu Long [1980]) helps.

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