Duress Flashcards
3 types of Duress
1) Physical Duress: Sign this or die
2) Duress of Goods: retaining goods belonging to someone else in an unacceptable manner
3) Economic Duress: Past the point of normal commercial pressure
Economic Duress requires
1) pressure amounting to Compulsion of the Will
2) Illegitimacy of that pressure
North Ocean Shipping v Hyundai
The Universal Sentinel
Pao On
Pao On 4 factors to determine Duress
1) Did the person claiming to be coerced Protest
2) Did that person have any other available course of Action?
3) Were they independently advised?
4) After entering into the contract did they take steps to avoid it?
Commercial Pressure
there is a fine line between Economic Duress and Commercial pressure:
Alec Lobb v Total Oil
Duress of Goods
Refusing to provide goods that are not legally owned
The Alev
Economic Duress more likely if:
- Party can perform but refuses in bad faith or for more $
- Party insists on additional payment or better terms
- Innocent party pays under protest
- There exists no alternative for the Innocent party
Economic Duress Less Likely if:
- genuine difficulties/problems to perform
- No intention to exploit
- Party alleging duress is not vulnerable
- party alleging duress has realistic alternative court of action