economic duress Flashcards
what is economic duress
where one party is forced into a contract. could be a resort from undue influence or economic duress
what is undue influence
when one party enters a contract due to pressure to gain an unfair advantage over the other party
atlas v kafco
atlas agreed to transport kafcos goods for many months. a rate was agreed. atlas later insisted on minimum quantities to be delivered. this new term was economic duress. kafco was forced out of business of atlas refused to carry their goods. argument was introduced by an illegitimate pressure.
pao on v lau yiu long
claimant had threatened to not complete a large contract for the purchase of shares. economic duress is present if:
1. Did the person claiming to be coerced protest about the pressure?
2. did that person have any other course of actions
3. was he independently advised?
4. did he take steps to make the contract void?
effects of a finding of duress
it makes the contract voidable
remedies for economic duress
economic duress doesn’t resort in damages. restitution to put the victim in the same position they were in before to contract was formed
CTN cash & carry v Gallagher
the threat to withdraw a credit facility was a lawful threat so there was no economic duress
progress bulk carrier v tube city
the charterers had no other way to ship the goods and faced catastrophic losses if they delayed any longer. this was economic duress
