Duress Flashcards
(9 cards)
Atlas Express Ltd v Kafco (1989)
Kafco had an agreement with Atlas to deliver to Woolworths in time for Christmas. Atlas claimed they underestimated the cartoons and that it would cost more, which means Kafco had to pay more than agreed when Kafco declined. Atlas said they would refuse delivery. Kafco signed but later declined.
Economic duress is proved, Kafco had no time to find another supplier. Therefore Atlas could not enforce the new price.
Pap On v Lao Yiu Long (1979)
Courts defined 4 factors to asses or prove duress;
Did they object at the time?
Did they have any real alternative?
Did they have independent legal advice?
How quickly did they try to avoid the contract?
CTN Cash & Carry v Gallaher (1994)
Gallaher delivered consignment cigarettes for CTN cash and carry. The cigarettes were delivered to a wrong address believing it was the right. The cigarettes were stolen & CTN refused to pay for the cigarettes. Gallaher threatened to withdraw their credit facility which they enjoyed. CTN paid and later made a claim of repayment. Gallaher was entitle to withdraw credit facilities at any time under the credit agreement.
Allcard v Skinner (1887)
Leading case on undue influence. Allcard was introduced to religious community that she joined. She took a vow of poverty, which required her to donate her wealth to the religious community. Later she sued to recover her wealth back.
It was held although undue influence was the reason she gave her wealth away, her right to recover the property had been lost due to lapse of time.
Royal Bank of Scotland v Etrudge (2001)
Mr and Mrs Etridge decided to buy a home but in Mrs Etridge name. The finance was arranged by the Roual Bank if Scotland. The loan provided was used for the husbands buisness but mrs Etridge signed all the papers without asking for an explanation and trusting her husband. Mrs Etridge claimed undue influence.
It was held by the HoL that the bank needs to put an inquiry whenever the wife stands as guarantor for a loan that is benefit of the husband. This is because the bank is at risk of undue influence in these situations. They must also insist the wife seek independent legal advice and insist she uses a solicitor. They must also get written confirmation
Williams v Roffey (1991)
This was the first application of the theory of practical benefit.
Attorney General v R (2003)
The definition of Duress is physical threat or other illegitimate pressure being used for an improper objective which is sufficiently serious to vitiate the consent of the other party.
Barton v Armstrong (1976)
To establish duress it should be established that the claimant entered into the contract at least partly as a result of illegitimate threats from the defendant
Halpern v Halpern (2007)
The parties had been engaged in a dispute over an inheritance. They settled the basis of agreement and in breach of the agreement, the claimants sought damages. The defendant claimed they entered under duress. the court of appeal held that they could not restore the parties completely and therefore some money rate compensation may be substituted.
