duress Flashcards
ACC Bank v Dillon; Charleton J
‘if one party does not freely and voluntary agree to the agreement… there is no meeting of minds.’
Barton v Armstrong
extreme threats, in the form of threats to kill, were levelled against business man and family
Blackwood v Gregg
man executed deed in favour of man who abducted him, captivity was duress
Griffith v Griffith
man who got underage girl pregnant was threatened with legal proceedings if he didn’t marry her, marriage rendered invalid
Pao On v Lau You Long; Griffith J
‘ordinary commercial pressures are insufficient… there must be some element of coercion so as to vitiate consent.’
Universe v Senital
ship-owners were blocked from leaving a port by ship-workers who threatened industrial action if they did
not pay a lump-sum into their welfare fund, the ship-owners accepted in order to be able to leave the port, agreement rendered void on the basis of economic duress as this essential made a legal threat (threatening industrial action) illegal
(demanding a lump sum).
GMAC Commercial Credit Ltd v Dearden
court found that although D signed contractual guarantees due to concern about their company’s financial reputation, this was normal and legitimate pressure in such commercial arrangements
D&C Builders
builders had completed works and were owed a sum by D, they refused to pay, and knowing the builders were in financial difficulty, offered to pay a lesser sum in satisfaction of the whole debt, builders reluctantly accepted, builders entitled to take proceedings for the remainder of the sum as they only agreed to it because of the defendants penalizing their financial position with economic duress
William v Raffey Bros
sub-contractor could justifiably be paid more for work they already agreed to do where the other party is preventing a disbenefit by ensuring the work is done - only if economic duress is absent. noted obiter that a contract may be rendered voidable where a contract is taking unfair advantage of the situation by asking for an increased price prior to completion of the work
Rogers v Iaralco
P argued that he only entered into an agreement because he was under pressure to pay wages and he was suffering from an illness, held that paying wages is a ‘universal pressure’ and cannot be a ground for
economic duress, also noted while P’s illness was unfortunate, he had arranged meetings with the party therefore there was no reason to suggest there was any duress present
ACC Bank v Dillon
P entered into an agreement with the
D bank to guarantee its liabilities because the bank threatened to appoint a receiver, thus P argued
this amounted to economic duress. Charleton J refused, and held that a party using another’s financial position alone is insufficient in the absence of improper conduct - for a claim in economic duress it must be something that goes outside the bounds of
acceptable commercial behaviour and that had not been satisfied in this case.
Hyundai Shipping case
the action and inaction of the owners can only be regarded as an affirmation of the terms of the original contract - 7 month delay in bringing case of duress from time contract was entered into
