Economic Duress

Question 1

Introduction

Answer 1

• Someone enters contract due to financial threats
• Pressure
• If established contract is voided
• Cannot be against property (Skeate v Beetle)
  (Atlas Express v Kafco) : economic duress as no consideration was provided

Question 2

First Test

Answer 2

1. Forces you into contract, lack of practical choice
   - Evidence but no choice to agree
   (Universe Tankship v ITW Federation

Question 3

Step 2

Answer 3

2. Pressure must be illegitimate

(Pau On v LAU Yiu Long)
1. Protest
2. Another course of reasonable action
3. Independently advised?
4. Steps taken to avoid thing in action

• If lawful threat, may not be economic duress (CTN Cash and Carry v Gallagher)

Question 4

Step 3

Answer 4

3. Illegitimate Pressure is a significant cause of entering contract
   - C wouldn’t have entered otherwise (Progress Bulk Carriers v Tube City)
   - Time lapse may lose claim (The Atlantic Baron - 8 months)

Question 5

Remedies

Answer 5

Restitution of property or money