Economic Duress Flashcards
What was held in Barton v Armstrong?
There is no obligation to show he would not enter into the agreement BUT FOR the threat
What was held in Skeate v Beale?
Duress to goods will not suffice to make a contract voidable
What is economic duress?
A person enters into a contract due to threats to damage a business/person financially
What were Lord Scarman’s remarks in Pao on v Lau Yiu Long?
“Duress is a coercion of the will so as to vitiate consent and it must be shown it was not a voluntary act”
What is the test for economic duress?
- Coercion of will
- Illegitimate pressure
- Significant cause
- C has no alternatives
What were Lord Scarman’s remarks in ‘The Universe Sentinel’?
“There should be a lack of any practical choice but to submit’
What did the Privy Council suggest in Pao On v Lau Yiu Long?
Factors which might be considered such as: protest, other options and independent advice
What is the remedy for economic duress?
They must seek rescission as soon as possible after the economic duress has stopped
