Vitiating Factors Flashcards
remeber
a contract is a vlunatry agreement
if one party has been forced into it then it should not be valid.
this could be becuase of undue influence, duress or economic duress
ubdue nfluence
basically manipualtion sombody to enter a ocntrct
they may not know they have been manipulated but tehy have
usually between one party who has teh trust and one has power - special rlationship
allcard v skinner
a novice nun gave nea all her money to the mother suerior - not about obviys threas ut subtle manipulation
duress
- making obvios threats tos omeone - verbal threats ad phsycial threats
- ecluded threats to propert has be threat to someone physcal bdy
- differnece between economic duress and duess is one has to be illegal. duress - has to be s threat of an ilgeal act
econmouc duress - threts des have to be ilgea but illigetimate
dffernce betweene conomi durss and durss
probems
threats of property were not usully treate as
what is ecocnmic duress
it is subjectie - so it is an issue at will be rise and what the court will do if they find it
threat to damag a buissness or a person fincialy
no other practical choice - beause of teh financial threat they have no choice but to agree with the
elemts
- pressure
- no other practical choice
3.the pressure must be illegitimate - the pressure must have been the reason the claimant entered into the contract
key case elements 2.
universe tankships inc f monrovia v international transport workes ederatin
universe tankships inc f monrovia v international transport workes ederatin
no other prctial choice
what makes pressure illietimae
the ase of pao on v lau yiu long 1979 identied factr whic help t decide whether economic duress was presnst
sets out a 4 part test
- did the person claiming to be coerced protest about the prssure
- did that person have any otehr available course of action that was reasonable
- was he or she independlety advised before taking teh action
- after entering into the contract did he or she take step t mke teh contract vod
- theese 4 point help the courts to decide hweter the pressure amounts to be lligitimate o not
illigetimate is differenat to unlawful
pressue an still be illigitimate if teh pressure is legal
key case element 3.
atlas express v kafco
atlas express v kafco
pressure must be illigitmate
progress bulk carriers Ltd v tube city
in this ccase, cooke J sstated that illigetimate pressure can be constituted by conduct which is not itself unlawful.
pao on v lau yiu long 1979
sets out a 4 part test to dicover if there i illigetite pressure
- did the person claiming to be coerced protest about the prssure
- did that person have any otehr available course of action that was reasonable
- was he or she independlety advised before taking teh action
- after entering into the contract did he or she take step t mke teh contract vod
- theese 4 point help the courts to decide hweter the pressure amounts to be lligitimate o not
remedies
if ecoomic duress is presnt the contract willbecome voidable
there is no award of daes fr conomic duress
istead the courts can make an order for the restitutio of property or moey taken under such duress
restitution means giving back the proprty to the victim and restring the money tey gae away under duress
it is an equitabl remedy tat restores a person to the postition they would ave been ebforehand
t i discretionay, meaning teh courts do not have to do it.
