What is the ratio in Williams v Bayley?

Contracts entered into under threats of criminal prosecution can be set aside as the threats constitute illegitimate pressure that vitiates the party's free consent.

What did the court decide in Williams v Bayley?

The House of Lords held that a mortgage given under threat of criminal prosecution could be set aside due to the duress/undue influence exercised by the bank.

Why is Williams v Bayley important for contract law?

It's a foundational case establishing that threats of criminal prosecution constitute illegitimate pressure, laying groundwork for modern duress doctrine and vitiating factors.

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