LAW P3 CONTRACT CASES (ECONOMIC DURESS)

Question 1

What are the cases for the economic duress factor (pressure)

Answer 1

• Pao on v lau yiu long, lord scarman held that commercial pressure is not enough
• The sibeon and the sibotre, Economic duress occurs when one party exerts illegitimate pressure on another forcing the to enter a contract without genuine consent

Question 2

What are the cases for the economic duress factor (Illegitimate)

Answer 2

• The Atlantic baron, the illegitimate pressure exerted by the building company was a threat to break a contract which led to a further contract
• The universe sentinel, economic duress arises where one party exerts illegitimate pressure which coerces the other party into entering a contract without genuine consent

Question 3

What is the case for the economic duress factor (Significant)

Answer 3

• B&S contractors v Victor green publications, the payment had been made under duress and the client was entitled to recover it back
• PIAC v Times travel, it must be proven whether the pressure was a significant cause inducing the claimant to enter the contract

Question 4

What is the case for the economic duress factor (lack of choice)

Answer 4

• The Alev, the contract was voidable on the ground of duress
• Atlas express v Kafco, if the pressured party has no practical alternative but to comply, the contract is voidable under the grounds of economic duress