vitiating factors - ecnomic duress Flashcards
whats ecnomic duress
finacial threat causing party to enter contract
give a case that defines ecnomic duress
the sibeon and the sibotre
what is the definition of ecnomic duress from the sibeon and the sibotre
such a degree of coercion the other party is deprived of free concent and agreement
what are the 3 elements of ecnomic duress
-ecnomic pressure resulting in lack of choice
-illigitemate pressure
-illigitamate pressure significant cause of making contract
give a case for the 1st element of ecnomic duress
universe thankships
who miust the econimic pressure be exerted on and what must it ammount to
on the innocent party
compulsion/lack of practical choice
what must the econmic pressure go further than
market pressure
whats the test for the 1st element of ecnomic duress
was there another course of action which was reasonable
what case sets out the test for the 1st element of ecnomic duress
Pao On
what other factors do the courts look at for the first element of ecnomic duress
did the injured party protest?
was there an alternate option?
did injured seek legal advice?
did c take steps to avoid contract?
give a case for belated protest so not sucsessfull in ecnomic duress
Atlantic baron
what will happen if the claiment seeks legal advice
they will be less likely to be ecnomic duress
is unlawful pressure illigitamet
yes always
when will lawful pressure be illigitmate
if its unreasonable (no entitlement to make threat)
give a case for reasonable pressure so no ecnomic duress
CTN cash + carry v gallagher
give a case for unreasonable pressure so ecnomic duress
progress bulk carries v tube city
is threat to breach contract illigitmate
yes
how must the ecnomic duress effect the contract
must be one (nor main or only) reason for entering contract
give a case for ecnomic duress contributing but not being the only reason for enteing contract
barton v armstrong
what things do the courts also consider for ecnomic duress
time taken-too long affirms contract
steps taken to make contract void
what are the remidies for ecnomic duress
recision OR contract rentered voidable
why might c’s right to recind be lost
if they affirmed the contract in anyway
what will happen if the contrqacat is renderd voidable
c can continue or repudiate contract
BUT might not get money back just no longer bound
