Vitiating Factors: Economic Duress

Question 1

Define

Answer 1

There was illegitimate pressure that compelled one party into entering a contract

Question 2

CNT Cash and Carry v Gallagher

Answer 2

Ordinary commercial pressure cannot be economic duress

Question 3

Atlas Express v Kafco

Answer 3

Illegitimate pressure can be through threatening to breach a contract

Question 4

Williams v Roffey

Answer 4

Mere indication a contract may not be able to be completed is not illegitimate pressure

• must be deliberate threat unless certain demands met
• not if party simply informing and other party offering freely

Question 5

The Universe Sentinel

Answer 5

Threatening to do a tort can be illegitimate pressure

Question 6

Must compel them to enter the contract

Answer 6

Must be against their will

Question 7

Pao on v Lau Yui Long

Answer 7

Factors to consider if against their will:
- V protested about pressure
- there was no other reasonable/practical course of action
- not independently advised before contracting
- V tried to take steps to get out of contract as soon as possible
(2nd and 4th most important) should have 3/4 factors

Question 8

Economic duress remedy

Answer 8

Contract can be rescinded as long as no bars apply (puts back in original position)
If bars cannot claim anything