Economic Duress AO1 (OCR)

Economic duress definition

Illegitimate financial threat which leaves C with no choice but to enter a contract.

Legitimate pressure?

Is the rough and tumble of business dealings, the choice not to provide credit where there is a lack of payment or where a party refuses to enter into a contract

Lack of payment case

CTN C&C

Party refuses to enter a new contract case

TT v PA

Illegitimate?

Must be unlawful or where lawful is immoral or unconscionable

Illegitimate case

Siboen - demand for more money and threat to breach

Beyond ordinary commercial pressure case

Progress Bulk - taking advantaged of a fault D cause

Lead to a lack of choice

Coerced into agreeing to the contract.

Lead to a lack of choice case

Universal v ITWF removes any opportunity to refuse and removes the choice completely (stuck in dock)

Pao on factors

C should try to mitigate any duress by seeking legal advice, protesting about pressure, looking at alternatives and taking steps to make to contract void.

Consequences will not result in damages?

Instead restitution or contract will be declared voidable.

What if C fails to act at haste?

However, where the C fails to act haste, then they will affirm the economic duress

Fail to act haste case

Atlantic Baron - 8 months delay