Legal Definitions - ex capite metus

Ex capite metus is a Latin legal phrase, primarily used in Scots law, that translates to "on the ground of fear." It refers to a situation where a legal agreement, contract, or transaction can be canceled or undone because one party was coerced into it by serious threats, leading them to act out of genuine fear. Essentially, if a person's consent to an agreement was not truly voluntary but was instead compelled by intimidation or duress, the agreement may be deemed invalid.

Here are some examples illustrating this concept:

• Business Contract Under Threat: A small software startup owner is approached by a larger competitor. The competitor's representative subtly but clearly threatens to launch a baseless but financially devastating lawsuit against the startup, and also spread damaging rumors within the industry, unless the owner sells their company for a fraction of its true value. Fearing the ruin of their business and reputation, the owner signs the sale agreement.
  • Explanation: In this scenario, the startup owner entered into the sale agreement not because they genuinely wanted to sell at that price, but because they were operating ex capite metus – on the ground of fear – due to the serious threats of legal and reputational damage. This fear undermined their free will, potentially allowing them to challenge the validity of the sale.
• Personal Financial Agreement Coerced by Caregiver: An elderly individual, reliant on a live-in caregiver for daily needs, is pressured by the caregiver to sign a document gifting a substantial sum of money. The caregiver repeatedly threatens to quit and leave the elderly person without assistance if they refuse, knowing the individual has no other immediate support. Out of fear of being left helpless, the elderly person signs the document.
  • Explanation: The elderly individual's decision to gift the money was made ex capite metus. The caregiver's threats of abandonment created a genuine fear for their well-being and safety, compelling them to agree to the financial transfer against their true wishes. This situation could lead to the gift being rescinded.
• Property Lease Under Duress: A family renting a home receives a sudden notice from their landlord demanding they sign a new lease with significantly higher rent and waive their right to challenge future rent increases. The landlord explicitly states that if they don't sign immediately, he will spread false rumors to make it impossible for them to find another rental in the area and will also initiate a costly, drawn-out eviction process, even though they have always paid rent on time. Fearing homelessness and a ruined rental history, the family signs the new lease.
  • Explanation: The family's agreement to the new, unfavorable lease terms was made ex capite metus. The landlord's threats of reputational damage and an unfair eviction process induced a legitimate fear of severe negative consequences, compelling them to sign an agreement they would not have otherwise accepted voluntarily.