Unit 4.2- Economic Duress

Question 1

Define economic duress

Answer 1

Illegitimate threat or pressure or violence

Question 2

What are the requirements of economic duress?

Answer 2

Set out in Carillon Construction v Felix there are three:

• Illegitimate threat or pressure
• That leave the party with no practical alternative
• That is a major reason for inducing that party into the contract

Question 3

What are the factors to consider when deciding whether there has been an illegitimate threat or pressure?

Answer 3

Set out in the Carillion case:
Actual or threatened breach?
Did the claimant protest?
Did defendant act in good or bad faith?

Question 4

Where does the burden lie for proving duress?

Answer 4

On the party who alleges it