Economic Duress

Question 1

What is economic duress

Answer 1

The threat to damage a person or business financially

Question 2

What does Economic duress not cover

Answer 2

A threat towards property except in severe cases

Question 3

What case covers a threat towards a business financially

Answer 3

Atlas Express v Kafco

Question 4

What are the elements of Economic Duress

Answer 4

1. Compulsion or lack of practical choice
2. Pressure must be illegitimate

Question 5

Explain when it will not be Compulsion or lack of practical choice

Answer 5

When there is a reasonable choice that indicates no economic duress

Question 6

What case created the test for compulsion

Answer 6

Pao On

Question 7

What are the 4 elements in the Pao On test

Answer 7

1. Did they protest?
2. Available course of action?
3. Independently advised?
4. Did they take steps to try and get out of the contract after entering

Question 8

Outline the elements to prove illegitimate

Answer 8

1. Commercial pressure is not enough
2. Lawful will not normally amount to illegitimate
3. While unusual lawful pressure could be illegitimate

Question 9

What is economic duress in terms of remedies

Answer 9

It is a:
1. Vitiating factor
2. If successful allows the equitable remedy of restitution
3. Damages are not available

Question 10

What is restitution

Answer 10

Restores a person to the position they would have been in if not for the improper action of another + relieves them of contractual duty

Question 11

What does equitable mean

Answer 11

Equitable remedies are broad in scope, flexible, direct in application and supplement the common law.