Economic Duress

Question 1

the 3 elements to economic duress

Answer 1

1) lack of practical choice
2) caused by illegitimate pressure
3) but for the duress, agreement wouldn’t have been entered into

Question 2

For a lack of practical choice, the victim must have…

Answer 2

no practical alternative but to acquiesce to the demand

Question 3

Factors to consider when assessing legitimacy of the pressure:

Answer 3

• whether there has been actual/ threatened breach of contract
• whether person allegedly exerting pressure has acted in good/ bad faith
• whether victim protested at the time; +
• whether he affirmed + sought to rely on the contract

Question 4

What happens if there has been an actual/ threatened breach of contract?

Answer 4

= usually amounts to illegitimate pressure.

Question 5

When will it be found that the threat is made in bad faith + thus lead to duress?

Answer 5

If unlawful threat made for illegitimate ends.

Question 6

Generally, what is seen if the victim doesn’t protest at the time the alleged duress was exerted?

Answer 6

Claim may fail - (North Ocean Shipping Co Ltd v Hyundai - victim claimed 8months later = fail as they affirmed it…)

Victim should demonstrate evidence of protest at the time the alleged duress was exerted

hard test

Question 7

What must be shown that the agreement wouldn’t have been entered into if there hadn’t been the duress?

Answer 7

Causation test;

illegitimate pressure must’ve actually caused making the agreement - it wouldn’t otherwise have been made at all/ in the terms which it was made.

pressure = been decisive/ clinching