Economic Duress Flashcards
Economic duress
Entering a contract due to financial pressure
Goes beyond usual rough and tumble of business dealings
Case for property not duress
Skeate v Beale
Case for economic duress
Atlas express v Kafco
Test for economic duress
- Did pressure force you into contract or leave a lack of practical choice
- Pressure must be illegitimate
- Illegitimate pressure is a significant cause of making the contract
Force/ lack of practical choice
Has to be evidence there was no choice but to agree
Case for force/ lack of choice
Universe tankships v ITW
Pressure must be illegitimate
Factors set out in Pao On v Lau Yiu Long
- did person claiming duress protest
- another reasonable action available
- independently advised before action
- steps to avoid thing
Lawful action threatened case
CTN cash and carry v Gallagher
Illegitimate pressure is a significant cause
C would not have entered the contract if it was not for the pressure placed upon them by D
Question of fact depends on circumstances of case
Illegitimate pressure case
Progress Bulk V Tube City
Right to claim may be lost due to lapse of time
Atlantic Baron
Remedies
Restitution of property or money
