Vitiating Factors - Economic Duress Flashcards
Economic Duress Definition
When someone enters as a contract as a result of financial threats e.g threat to damage c or c’s business financially
What the claimant must prove in order to claim economic duress
The main requirement to prove economic duress is pressure
1.Did D put serious financial pressure on C To agree to the contract
- Was this pressure illegitimate
3.Was it a significant cause of claimant entering the contract
What makes the pressure illegitimate
This was established the case of Pao On . Pressure is illegitimate
if The person who was being pressurised protested about the pressure
The person being pressurised had no reasonable course of action so had to agree
The person being pressurised did not have independent advice before agreeing.
The person who was pressuring took steps after the contract to make it contract
Any threats which is unlawful will definitely be illegitimate
The remedies of economic duress
Effects and remedies
Contract is voidable if the courts agree there was economic duress
The remedy is restitution –any money/property obtained by economic duress must be returned
Bars to restitution e.g In the Atlantic Baron, C’s delayed 8 months before bringing the claim it was economic duress but restitutions not awarded
Damages are not awarded here
