LAW P3 CONTRACT (ECONOMIC DURESS) Flashcards
1
Q
What does duress in contract law mean?
A
Duress in contract law relates to where a person enters an agreement as a result of threats.
2
Q
What is economic duress?
A
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.”
3
Q
What are the 4 factors to consider in assessing whether economic duress was present?
A
The privy council identified 4 factors to consider in assessing whether economic duress was present:
- Did the person claiming to be coerced protest?
- Did that person have any other available course of action?
- Were they independently advised?
- After entering into the contract, did they take steps to avoid it?
