Economic Duress

Question 1

What is Economic Duress?

Answer 1

A vitiating Factor, that makes a contract voidable

Where party uses superiority illegitimately to coerce other party to contract
- McKendrick

Question 2

Elements to establish Economic Duress
- with establishing case

Answer 2

Times Travel Ltd v Pakistan International Airlines
1) D uses illegitimate pressure
2) Caused C to enter contract
3) C had not alternative

Question 3

Explain Illegitimate Pressure

Answer 3

Threating party (D) has deliberately created/increased C’s vulnerability to a demand

Threatening party isn’t genuinely owed what it’s demanding

Question 4

Examples of Illegitimate Pressure
- with case

Answer 4

Threats to:
- Commit crime
- Breach contract
- Cancel contract

CTN Cash Carry v Gallagher

Question 5

Explain Pressure causes C to enter contract
- with cases

Answer 5

Pressure from D induces C to enter contract
- Kolmar Group v traxpo

Question 6

Explain C had no alternative

Answer 6

Claimant had no alternative but to give into pressure
- Atlas express v Kafco

Question 7

What remedies are available for Misrepresentation?

Answer 7

Recission/Restitution - equitable remedy that puts parties to positions from before contract was made

• court may order property or money to be returned