Duress

Question 1

Threat to goods vs. the person

Answer 1

• Skeate v Beale = threat of goods, so economic duress, does not count as duress
• Barton v Armstrong = threats to kill are an example of duress to the person
• Occidental Worldwide Investment Corporation v Skibs A/S Avanti (The Siboen and The Sibotre) [1976] = recognised economic duress, but it was not found on facts
• Pao on v Lau Yiu Long ‘coercion of the will’ + Lord Scarman identified factors that are relevant to whether the pressure actually resulted in coercion, such as whetehr the other party had an alternative course

Question 2

Economic duress being applied restrictively

Answer 2

• Causation for economic duress is stricter = It must be a ‘significant cause’ [Dismskal Shipping], not just ‘a’ reason that was established for duress to the person in Barton v Armstrong
• ‘hard nosed’ commercial tactics do not count as economic duress = Pakistan Airlines Internatinal v Times Travel [TT depended on PAI but they terminated]
• the threat not to contract in the future is not duress [CTN Cash and Carry v Gallaher]

Question 3

What amounts to economic duress?

Answer 3

• Threat to stop supply [Adam Opel GmbH v Mitras Automotive Ltd]
• Threats to withhold delivery [Carillion Construction Ltd v Felix]
  + The Universe Sentinel = the key question is the illegitimacy of the threat
  +Pakistan International Airline Corporation v Times Travel = lawful act duress recognised, but different tests = ‘morally reprehensible way’ [Lord Hodge] or ‘bad faith’ [Lord Burrows]