ecomomic duress

Question 1

what is the definition of economic duress and the cases that go with it

Answer 1

is pressure which gos beyond the usual rough & tumble of business dealings

(Interfoto v Stiletto)

every case is decided on its particular circumstance but certain factors must be present

(Pao on v Lau Yiu Long )

Question 2

illegitimate threat and what is not enough

Answer 2

there must be an illegitimate threat either to breach an existing contract (Atlas express v Kafco)

or to commit a tort (Universal Tankshipsv ITWF)

extraordinary commercial pressure is not enough (Cash and Carry v Gallagher)

Question 3

what is the rule about illegitimate threat and bad faith

Answer 3

illegitimate threat made in bad faith (unethical threat) can in fact be basis for a claim in duress (Progress Bulk carries v Tube City)

Question 4

what does the case of Times travel v Pakistan Airways establish

Answer 4

if d exerts pressure they think they’re legally entitled to this will not be an illegitimate threat

Question 5

what is the second factor

Answer 5

threat must leave no realistic alternative but to comply with it (Atlas Express v Kofco)

Question 6

what other factors does the case of Pao On v Lau Yui Long establish

Answer 6

was he or she independently advised before taking action? Seeking legal advice before complying with a threat they may be seen as having a business decision & be unable to claim duress

Question 7

what is asked after entering the contract

Answer 7

did he or she take steps to make the contract void

Question 8

what does the case of the Atlantic Baron establish

Answer 8

the party must protest of the time —> the right to claim may be lost through lapse of time