economic duress Flashcards
what is economic duress
where you are forced into a contract because of the possibility of financial damage
what does economic duress
spoils the contract at the point it was made, therefore making it voidable
what is the remedy for economic duress
restitution, an order by the court that aims to restore the person affected by the economic duress to the position that they would have been in had the ‘improper act’ not happened’
what will never be awarded for economic duress
damages
how do the courts consider economic duress cases
every case for economic duress is considered on its own particular circumstances
what do you have to prove for economic duress (PILS)
- Pressure
- that was Illegitimate
- there was a Lack of choice
- the pressure was a Significant
what is the rule for pressure for economic duress
it has to be more than ‘normal commercial pressure’
which case said that there was not economic duress, just normal commercial pressure
the sibeon, the ship owners had acted under ‘great commercial pressure’ but this was not a concern of their will
what is the case for pressure being illegitimate
Atlas express, mid contract one party refused to deliver goods to the other as they had agreed unless a higher fee was paid, because their was no alternative delivery service taht could be used and the delivery was needed immediately, there was economic duress
What is a case for illegitimate pressure first letter G and what did this tell us
Gallagher LTD: if the threat is lawful then it cannot be duress.G withdrew credit after goods were delivered to the wrong warehouse and stolen, this was not economic duress.
what is the case which was the exception to the rule that pressure should be unlawful for economic duress
Tube city. a ship that was hired to move cargo was not ready, the cargo was losing value. this was considered to be economic duress
what is the case for a lack ofchoice
the universal sentinel. trade unions stopped a boat from leaving a port until they paid a financial sum. the ship was on a time-limited charter so they were forced to pay. thsi was economic duress.
what does the loss for economic duress need to be
substantial.
which case set out the PAAA guidelines to determine illegitimate pressure
Pao On.
what are the PAAA rules
- did the person Protest at the time?
- was there an Alternative?
- was independent Advice taken
- were steps taken to Avoid the contract after entering into it
