5242856
Description
Flashcards by Chantal Briancon, updated more than 1 year ago
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Created by Chantal Briancon
about 8 years ago
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| Question | Answer |
| What is duress in contract law? | A party that has been coerced into entering a contract may be able to rely upon the defence of duress. This would deem the contract as being voidable and therefore, the defendant would not have the follow out the obligations stated in the contract as it can be rescinded. |
| Duress to the person | This is where there is actual violence or threats of violence to the claimant or members of their family. The doctrine is very narrow and therefore, the coercion must either be actual or threatened violence causing death of bodily harm OR actual or threatened unlawful imprisonment. |
| BARTON V ARMSTRONG | The defendant threatened to kill the claimant if he did not purchase shares from him. |
| Duress to goods | This is where the party threatens to cause damage or destroy goods belonging to the claimant. |
| SKEATE V BEALE | This element of duress was rejected by the courts for many years. This was likely because the pressure involved does not seem sufficient to amount to a compulsion to enter into a contractual document. |
| THE SIBEON AND THE SIBOTRE | Kerr J stated 'If I should be compelled to sign a contract for a normal but legally sufficient consideration under an imminent threat of having my house burnt down or a valuable picture slashed through without any threat of physical violence to anyone, I do not know that the law should uphold the agreement'. |
| ASTLEY V REYNOLDS | Example of duress to goods. |
| Economic duress | Economic duress is where there is illegitimate pressure is applied to the party, making them become a party to the contract. It must go beyond COMMERCIAL PRESSURE. |
| NORTH OCEAN SHIPPING COMPANY V HYUNDAI CONSTRUCTION | The first definitions of economic duress looked at whether or not there had been any 'coercion of the will'. |
| PAU ON V LAU YIU LONG | The Privy Council established 4 factors to consider when establishing economic duress: 1. did the person claiming to be coerced protest? 2. did that person have any other available course of action? 3. were they independently advised? 4. after entering into the contract, did they take steps to avoid it? |
| UNIVERSAL TANKSHIPS V ITWF | This developed the more modern approach of establishing economic duress - this being to look at whether there was illegitimate pressure that was applied to the innocent party. |
| ATLAS EXPRESS LIMITED V KAFKO | The company had been made to pay the price through economic duress - if they had not agreed, their company would be bankrupt. |
| CTN CASH & CARRY LIMITED V GALLAGHER | The threat made by the defendant was lawful due to the terms of the credit agreement. However, when such duress is lawful is still unclear and there are no clear boundaries. |
| DSDN SUBSEA LIMITED V PETROLEUM GEO-SERVICES ASA | Dyson J established the most recent principles to establish economic duress: 1. there must be pressure that leaves a lack of practical choices for the party 2. this pressure must be illegitimate 3. this pressure must be significant case inducing the claimant to enter into the contract |
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