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Contract - Vitiation

Vitiating Factors: Duress

QuestionAnswer
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 Yiu 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
Created by: Oscar.G
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