CONTRACT LAW L4 - Duress & Undue Influence - ECONOMIC DURESS & CONSIDERATION

Question 1

When is the relationship between economic duress and consideration most clearly illustrated? (1)

Answer 1

Where an attempt has been made to vary a contract.

Question 2

What situation would illustrate the relationship between economic duress and consideration? (5)

Answer 2

If X agrees to supply a computer package to Y and the original agreed price is £1,000 and X tries to reshape Y to pay more at £1250.
If X does no more than supply the computer package then it has offered no consideration to make Y’s promise to pay more binding so the variation lacks consideration so it is not enforceable.
If X does something above and beyond its original contractual obligations it may amount to good consideration.
The courts will identify practical benefit as good consideration to make a promise more binding.
Even is such practical benefit exists, the promise will not be enforceable where duress has been exercised to extract the promise to pay more.