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Contract - Duress
Duress
Question | Answer |
---|---|
What is duress? | Illigitemate pressure that induces a party to enter a contract |
Three part test for duress | (1) illigitemate pressure applied to C (2)pressure is significant cause inducing claimant to enter (3) lack of practical choice for C |
Pao On v Lau Liu Long | outlines the 'coercion of will' factors that indicate illigitimate pressure (complaining, options, advised, trying to void contract) |
Where may pressure come from? | Pressure may come from an unlawful act or lawful act in bad faith |
Barton v Armstrong | Death threats to sign a contract |
Atlas v Kafco | Threat by larger company to breach contract - economic duress |
The Atlantic Baron | Claimant delayed too long and was held to have affirmed new contract (ship builders demanded more pay) |
The Universe Sentinel | Threat was to commit a tort |
CTN v Gallagher | Threat to remove credit was lawful (OG contract said they could) so were simply using 'bargaining skills' |
Times Travel v PIAC | Leading case: lawful pressure was in good faith (didn't believe they owed commission) |
Progress Bulk Carriers v Tube City | Legitimate pressure in bad faith is illigitimate (withdrew offer to help last minute) |
Pressure can come from what possible unlawful acts? | Criminal, tort, but typically threat of breach of contract |