Economic duress

Question 1

What is meant by economic duress?

Answer 1

-when a party is forced into a contract due to threat to finances.
-This is illegitimate pressure that results in a lack of choice

Question 2

What are the leading cases for economic duress?

Answer 2

-Atlas Express V Kafco
-Universal Tankships V ITWF

Question 3

Atlas Express V Kafco?

Answer 3

-agreement over transport of goods
-Atlas tried to insist min quantity
-Kafco forced to agree because of a loss of business.

Question 4

Universal tankships V ITWF

Answer 4

-stopped ship leaving over pay/condition demands
-money given under economic duress.

Question 5

Which cases go with pressure can be illegitimate even when unlawful?

Answer 5

1. CTN Cash & Carry V Gallagher
2. PBC V Tube city

Question 6

CTN Cash & Carry V Gallagher? (outdated law)

Answer 6

-economic duress not available when the action threatened was lawful (thought it should be unlawful)

Question 7

Progress bulk carriers V Tube City (updated CTN cash & carry)

Answer 7

-pressure could be illegitimate even when unlawful

Question 8

Suggested structure for economic duress?

Answer 8

1. Threat to finance
2. Illegitimate pressure
3. lack of choice for the C.
4. Remedies

Question 9

What are the remedies to economic duress?

Answer 9

-Not damages
-Recission+ makes the contract VOIDABLE.