LAW P3 CONTRACT (ECONOMIC DURESS)

Question 1

What does duress in contract law mean?

Answer 1

Duress in contract law relates to where a person enters an agreement as a result of threats.

Question 2

What is economic duress?

Answer 2

Economic duress is where a party is coerced into a contract through a threat to a persons financial situation.

It is not a true agreement - Lord Kerr in The Sibeon and The Sibotre said economic duress is “such a degree of coercion that the other party was deprived of his free consent and agreement.”