Economic Duress

Question 1

Economic Duress

Answer 1

If one of the parties to a contract was forced into making it they the contract should not be valid. The elements needed for economic duress are pressure was exerted, it was illegitimate or unlawful, it induced the claimant to enter into the contract, they had no real choice and they protested.

Question 2

Pressure exerted

Answer 2

Pressure must be exerted on the innocent party to a contract. The pressure must be greater than the ordinary pressures of the market or owning a business: Universe Tankshhips

Question 3

Illegitimate or unlawful

Answer 3

The pressure must be illegitimate or unlawful possibly due to a threatened breach of contract or due to a criminal act. Legitimate pressure might be increasing prices in line with inflation or a fluctuating market: Atlas Express Ltd

Question 4

Induced the claimant to enter the contract

Answer 4

This uses the but for test: but for the illegitimate pressure, the claimant would not have entered into the contract or made payment: Universe Tankships

Question 5

Claimant had no real choice

Answer 5

No real choice other than to enter into the contract, meaning there was no practical alternative option other than to comply: Universe Sentinel

Question 6

Claimant must have protested

Answer 6

Must have protested against the pressure at the time or shortly after the contract was made: Atlantic Baron Case