Economic Duress Flashcards
Economic duress definition
When someone enters into a contract as the result of financial threats
Universe Tankships v International Transport Workers - “the victims intentional submission arising from the realisation that there is no practical choice open to him”
Key cases for economic duress
Atlas Express v Kafco - illegitimate pressure on Kafka who had no choice but to agree to the new shipping arrangement to complete a big deal
Universe Tankships v International Transport workers - had to agree in order for ship to leave port
Indications for illegitimate pressure
Pao on v Lau yiu Long
1. Did the person claiming to be coerced protest about the pressure
2. Did that person have any other available course of action that was reasonable
3. Was he or she independently advised before taking the action
4. After entering into the contract, did he or she take steps to make the contract void
Can pressure be available when pressure is lawful
CTN Cash and Carry v Gallagher - no
Progress Bulk Carriers v Tube City - yes
Effects of duress
Always makes the contract voidable
Restitution of money or property extracted
Discretionary equitable remedy
