Economic Duress Flashcards
What are the steps for economic duress?
Define
Pressure
Illegitimate (protest, other courses, legal advice, legal action)
Remedies
What is economic duress?
Where one party is forced into a contract due to a threat to a business or person financially
What must economic duress include?
A pressure which:
has a practical effect of compulsion/lack of practical choice
is illegitimate
causes the making of the contract
What does compulsion/lack of practical choice mean?
The victim has no choice/free will/they had to enter the contract
Which 2 cases show economic duress?
Atlas Express v Kafco (in particular a compulsion)
Universe v International Transport (identified 2 elements: compulsion and illegitimacy)
Which case shows the 4 factors to consider for assessing if the pressure was illegitimate?
Pao On v Lau Yiu Long
What are the 4 factors to consider for assessing if the pressure was illegitimate?
Did the victim protest before making the contract?
Did they have any other available course of action?
Were they independently advised?
Did they take steps to avoid it as soon as the contract was created?
What is “protesting before making the contract”?
Complaining/arguing
What is not having “any other available course of action”?
Having no choice
What is “independent advice”?
Legal advice
What is “taking steps to avoid the contract after entering it”?
Taking legal action (almost) immediately
Which case shows a threat that was legitimate due to being a result of a business negotiation? (in other words the contract said they could withdraw credit)
CTN Cash & Carry v Gallagher
What does finding economic duress do to the contract?
Makes it voidable (invalid/not legally binding)
What are the remedies for economic duress?
Restitution (return) of property or money extracted
Can damages be awarded for economic duress?
No
