Economic duress Flashcards
define economic duress
when someone enters into a contract as a result of financial threats - the threats must be ‘improperly coercive’ though not necessarily unlawful
define undue influence
relationship between the parties which has been exploited by one party to gain an unfair advantage
define duress
when someone enters into a contract as a result of threats of violence to the person which would amount to crimes or torts if those threats were carried out
in what case was it said that the v’s intentional submission arising from the realisation that there is no practical choice open to him
Universe Tankships Inc. of Monrovia
what are the requirements for pressure (3)
1) the practical effect of which is that there is a lack of practical choice for V
2) which is illegitimate, and
3) which is a significant cause in inducing C to enter the contract
what case sets out the factors to decide if the pressure is illegitimate and therefore economic duress present
Pao On v Lau Yiu Long
what are the 4 factors under Pao On v Lau Yiu Long
1) person claiming to be coerced PROTEST about the pressure?
2) did that person have any OTHER AVAILABLE COURSE OF ACTION that was REASONABLE?
3) he/she INDEPENDENTLY ADVISED before taking the action
4) after entering the contract, he/ she TAKE STEPS TO MAKE THE CONTRACT VOID?
in what case was there economic duress as there was illegitimate pressure on Kafco who had no choice but to agree
Atlas Express v Kafco
what case stated that pressure could be illegitimate even when lawful
Progress Bilk Carriers v Tube City
what are the remedies for economic duress
Restitution of property or money AND avoidance of any contract
what kind of remedy is restitution and what does it aim to do
equitable remedy (given at court discretion) - restores a person to position if not for improper action of another
