economic duress

Question 1

Economic duress

Answer 1

Someone enters a contract due to financial threats
if economic duress is established it makes a contract voidable so it will continue until the innocent party avoids it in skeate v Beale threats to property were not deemed to be duress

Question 2

Core case economic duress

Answer 2

Atlas express v kafco
Held: this was economic duress no consideration was provided by atlas for the additional term

Question 3

Test for economic duress

Answer 3

1. Did the pressure force you into the contract/or leave a lack or practical choice for the victim
2. The pressure must be illegitimate
3. The illegitimate pressure is a significant cause of making the contract all need to be established

Question 4

Force you into the contract/lack of practical choices

Answer 4

For this to succeed there has to be evidence that there was no choice but to agree universe tankships v international transport workers (itw)
Held: this was economic duress and the money had to be repaid

Question 5

The pressure must be illegitimate

Answer 5

Factors were set out in pao on v lau yiu long

Question 6

pao on v lau yiu long

Answer 6

Held:in order for economic duress to be established the following must be considered
- did the person claiming economic duress protest?
- was there another reasonable course of action available
- was he independently advised before taking action?
- after entering the contract did they take steps to avoid one thing in question in this case this was not economic duress
- the criteria wasn’t met it was merely commercial pressure

Question 7

Ctn Cain and carry v Gallagher

Answer 7

Of the action threatened is a lawful one this may not be economic duress held: the claim failed as it was lawful for D to remove the credit agreement at any time as this was stated in the contract

Question 8

Case for the action threatened is a lawful one

Answer 8

Ctn Cain and carry v Gallagher

Question 9

The illegitimate pressure is a significant cause of making the contract

Answer 9

This means c would have not entered the contract it wasn’t for the pressure of the D mil depends on the circumstances of the case progress bulk carriers V tube city held: this was economic duress the hirers only agreed as they had no alternative

Question 10

Case for one night to claim economic duress may be lost due to lapse of time

Answer 10

The Atlantic baron held: there probably had economic duress but waiting 8 months simply affirmed the contract

Question 11

The Atlantic baron

Answer 11

The right to claim economic duress might be lost due to lapse of time

Question 12

Remedies

Answer 12

Restitution of property or money- the court ban order the property or money gained through economic duress to be returned to the innocent party the contract in economic duress also will be avoidable