Economic Duress^

Question 1

Economic Duress

Answer 1

Threat to damage a business or a person financially
Any contract made where one party is forced into it should not be valid
Courts will consider each case based on its individual differences

Question 2

Elements

Answer 2

Lack of Practical Choice
Illegitimate Pressure
Its A Significant Cause of Making the Contract

Question 3

Atlas Express V Kafco

Answer 3

Must be a serious threath, not commercial pressure
leave V with no practical choice
take adv of vulnerable P = invalid C

Question 4

Illegitimate Pressure

Answer 4

Unethical or wrongful that may invalidate the voluntariness of an agreement

Question 5

Universal Tankships Case

Answer 5

Protests during payment was proof of coercion
Even significant pressure might be legitimate is there’s reasonable justification

Question 6

Pao on V Lau

Answer 6

The pressure must go beyond normal commercial bargaining if:
- there was protest
- there was an alternative course of action
- The party had independent legal advice
- They took steps to avoid the contract after entering it

Question 7

CTN Cash V Carry & Callagher

Answer 7

It can be ilegitimate pressure, but not unlawful
by being a legitimate commercial pressure
or according to the court’s consideration of legitimacy

Question 8

Legitimate commercial pressure

Answer 8

A threat to break a contract is not automatically illegitimate
The context of the commercial relationship is important

Question 9

The Court’s Consideration of Legitimacy

Answer 9

Focused on whether G genuinely believed they had a right to a payment
Consider whether the threat was made in good faith

Question 10

Times Travel V Pakistan Airlines

Answer 10

If there was no breach and was not unlawful then there is no economic duress unless bad faith is proven
Unattractive alternatives = no economic duress

Question 11

Remedies

Answer 11

Recission - contract is valid but is voidable by the innocent party
Damages are not available for economic duress