Chapter 41 - Economic Duress

Question 1

Economic duress

Answer 1

When someone enters into a contract as a result of financial threats

Question 2

Economic Duress - Nature of the threat

Answer 2

-Serious threats to property should be considered as duress. The siboen and the Sibotre 1976

Question 3

Economic Duress - What must the threat do

Answer 3

Must be pressure that:
-Takes away the victims choice
-is illegitimate
-is a significant cause for inducing the victim to enter the contract

Seen in Universe Tankships Inc. of Monrovia v International Transport Workers Federation

Question 4

Additional criteria to help identify economic duress

Answer 4

Court used case of Pao on v Lau yiu Long to identify whether economic duress was present:
-Did the person claiming to be coerced protest about the pressure?
-Did that person have any other available course of action that was reasonable
-Were they independently advised before taking the action
-After entering the contract, did he or she take steps to make the contract void

Question 5

Economic Duress - lawful Threats

Answer 5

-In case of CTN Cash and Carry v Gallagher,
-Was decided that duress was not available when the action threatened was lawful

Question 6

Remedies for economic duress

Answer 6

-A claim based on economic duress does not result in an award of damages

Courts can:
-Make an order for the restitution of property or money extracted under such duress
-Declare the contract void