Economic duress

Question 1

What are consequences of economic duress on a contract

Answer 1

Contract becomes voidable

Question 2

1. ED

Answer 2

Economic duress is pressure which goes beyond the usual rough and tumble of business dealings - Interfoto v Stiletto

Question 3

2. ED

Answer 3

Must be an unlawful threat, that this can be eg to breach a contract - Atlas Express v Kafco.
Ordinary commercial pressure will not amount to an unlawful threat or to duress - The Siboen and Sibotre

Question 4

3. ED

Answer 4

A legitimate threat made in bad faith can be the basis for a claim in duress Progress Bulk Carriers Ltd v Tube City

Question 5

4. ED

Answer 5

Threat must have vitiated/negated the consent of the other party and left them with no realistic alternative but to comply with the demand - Pao On v Lau Yiu Long

Question 6

5. ED

Answer 6

The party seeking to claim duress must have protested at the time and must not hesitate in taking legal action to avoid the contract - The Atlantic Baron

Question 7

6. ED

Answer 7

If a party seeks legal advice before complying with a threat they may be seen as having taken a business decision and be unable to claim duress - Pao On v Lau Yiu Long

Question 8

7. ED

Answer 8

The right to end a contract for duress may be lost through lapse of time - The Atlantic Baron