DURESS CASES

Question 1

Economic duress example

Answer 1

Atlantic baron case : contract of a boat, shipbuilders decided to increase the price after building was commenced. The purchasers didn’t agree but feared that the delay of the completion would jeapordise the agreement that was negotiated. They paid them extra but after wanted to recover sums by duress. It was held that the pressure could amount to economic duress.

Question 2

What case States requirements of economic duress?

Answer 2

PAO ON V LAU YIU LONG 1980. Claimant threatened not to process with sale of shares.

Question 3

Example of threat to a person case

Answer 3

BORTON V ARMSTRONG

Defedent threatened to kill claimant if he didn’t purchase shares from him. The claimant purchased the shares under duress. Court held that duress occurred therefore the contract was voidable.