economic duress Flashcards
(12 cards)
what is economic duress?
where one party is pressured into entering a contract by illegitimate economic pressure
what is the effect of economic duress/
renders a contract void
steps for economic duress and case?
- the pressure exerted on the contracting party
- the pressure exerted was illegitimate
- the pressure induced the claimant to enter the contract
- the claimant had no real choice but to enter the contract
- the claimant protested at the time or shortly after the contract was made
- Pakistan International Airline Corp v Times Travel
principle from the Atlantic Baron? (1)
the pressure must be more than ordinary market pressure
when will pressure be illegitimate?
only when it falls outside the normal rough and tumble of business dealings/normal standards of business
rules with lawful/unlawful acts and case?
a threat to commit an unlawful act will always be illegitimate
a threat to do a lawful act will only be illegitimate if it is unreasonable
- Atlas Express v Kafco
principle from CTN Cash and Carry v Gallagher?
a threat to withdraw a credit facility was lawful (legitimate) since under the terms of the credit agreement credit could be withdrawn at any time
principle from Times Travel v Pakistan International Airlines Corp?
a legitimate threat made in bad faith can be the basis for a claim in duress
principle from Barton v Armstrong?
duress must be one of the reasons for entering or modifying) a contract, but does not have to be the only or even the main reason
principle from The Universe Sentinel?
the claimant must have been left with no reasonable alternative but to enter the contract
principle from The Atlantic Baron? (2)
the claimant must have protested at the time or shortly after the contract was made
what are the further considerations with case?
was the claimant independently advised?
after entering into the contract, did they take steps to avoid it?
- Pau On v Lau Yiu Long
