economic duress

Question 1

economic duress

Answer 1

• when a party enters into the contract as a result of financial threat

Question 2

1. pressure was exerted on the contracting party

Answer 2

-

Question 3

2. pressure was illegitimate

Answer 3

• threats of lawful actions may amount to duress if they leave the innocent party with no reasonable alternative other than to comply (progress bulk carriers v tube city)

Question 4

3. pressure induced the claimant to enter into the contract

Answer 4

-

Question 5

4. the claimant had no choice but to enter the contract

Answer 5

• atlas express v kafco

Question 6

5. the claimant protested at the time or shortly after the contract was made

Answer 6

-

Question 7

remedies for economic duress

Answer 7

• a finding of duress makes the contract voidable in which case the contract will be set aside and the victim will be able to recover any losses
• no award of damages