Vitiating Factors: Economic Duress

Question 1

Atlas Express v Kafco

Answer 1

• Economic duress was established as the agreement was induced by illegitimate pressure of great magnitude.

Question 2

Universe Tankships v International Transport Workers Federation, Universe Sentinel

Answer 2

• Several demands made in relation to pay and conditions as well as that the ship owners pay a large sum of money to the Seafarers International Welfare Fund amounted to compulsion.,

Question 3

Pao on v Lau Yiu Long

Answer 3

• The court identified four factors to be considered if there was to be economic duress.

Question 4

CTN Cash and Carry v Gallagher

Answer 4

• The threat to withdraw the credit facility was a lawful threat so there was no economic duress.

Question 5

Progress Bulk Carriers Ltd v Tube City

Answer 5

• The charterers had no other way to ship the goods, and faced ‘catastrophic’ losses if they delayed any longer; The agreement to waive all claims against them arising from the breach was obtained by economic duress.