Duress Flashcards
What is a vitiating factor?
Things that have an effect on the existence of a contract
What is duress?
Some form of coercion or threat to the person, property to a person’s financial property
What is the outcome of a VF?
The contract never existed in the first place
What are the types of duress?
Duress to the person (Barton v Armstrong)
Duress to goods (The Siboen v Sibotre)
Economic Duress
What is the leading case for economic duress?
DSND v Petroleum Geo Services
What are the elements for a successful plea of economic duress?
A lack of practical choice for the victim
Illegitimate threat
A significant cause inducing the contract
B&S Contracts v Victor Green
B&S contracted to build a stand
Before event, they were in a dispute with their workforce
Asked for an additional sum
VG agreed but later sued
Courts- unrealistic for B&S to pursue other avenues at the time but to submit
Carillion Construction v Felix
- Building company had a contractor supplying materials
- Refused to provide materials unless the materials were given
- Courts- no realistic alternative
How is illegitimate pressure ascertained?
- Was there a threatened breach of contract?
- Was the pressure applied in good or bad faith
- Did the victim protect or affirm?
Atlas Express v Kafco
- Christmas hampers
- AE hired to deliver goods to stores
- AE threatened not to deliver the goods on time
- No consideration, courts found in favour of Kafco
CTN Cash and Carry v Gallagher
The supplier (D) regularly supplied cigarettes to the buyers (C) and also granted a credit facility to C
D delivered cigarettes to buyers C but to the wrong warehouse, resulting in the cigarettes being stolen
Believing that the risk for the cigarettes had passed to C, D demanded payment and made clear they would withdraw C’s credit facilities if C failed to pay
Under the threat by D, C paid the contract price to D
In reality, the cigarettes still remained at the risk of D
C sought to argue that the payment was avoided ground of economic duress
Pressure applied in good faith=no economic duress
What is privity?
The doctrine that the burden of a contract cannot be imposed upon a third party
What is agency?
Where one party, the agent is authorised by another, the principle, to commit the principe to contractual relationships with third parties
What are the legal obligations of an agent?
They cannot sue or be sued
