Duress in Contract
- Created by: cephillips
- Created on: 06-05-14 12:53
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- DURESS
- Establishing a Claim
- 1. C must show pressure of an improper nature applied, or harm was threatend
- 2. The pressure, objectively asses, was such that the C had no other choice but to give in to it (no reasonable alternative)
- The Casual impact of the pressure was that the C acted in the manner the D wanted
- R v AG [2003] as summarized by Lord Hoffman
- Three Types
- Duress as to the Person
- Has very narrow limits and requires actual or threatened violence - Barton v Armstrong [1976]
- Duress as to Goods
- Pao On Lau v Yiu Long (1980) stated that it is possible, but the must be illegitimate and has constituted a significant part of the reason why the contract was entered
- Economic Durees
- DSND Subsea Ltd v Petroleum Geo-Services ASA [2000]
- The threat must be unlawful or illegitimate leaving no reasonable alternative can be held as economic duress.
- Example - threat to breach a contract unless extra is paid
- The threat must be unlawful or illegitimate leaving no reasonable alternative can be held as economic duress.
- DSND Subsea Ltd v Petroleum Geo-Services ASA [2000]
- Duress as to the Person
- Variations of Pressure
- Lawful threat or pressure - CTN Cash and Carry Ltd v Gallaher [1994]
- Implicit or Over Pressure - Williams v Bayley [1866]
- Commercial Pressure - Adam Opel GmbH v Mitras Automotive [2008]
- Causal Impact of the Pressure
- Prssure must be a "significant cause inducing the plaintiff to enter into the relevant contract" - Lord Goff in Dimskal Shipping Co [1992]
- Three considerations of the court here
- Is there a realistic or alternative action to submitting to the pressure
- Whether the C protested at the time
- Whether the C affirmed the contract - Atlantic Baron [1979]
- If C affirms the contract, after the coercion has ceased to influence him, he loses the chance to set aside the contract
- Three considerations of the court here
- Prssure must be a "significant cause inducing the plaintiff to enter into the relevant contract" - Lord Goff in Dimskal Shipping Co [1992]
- Establishing a Claim
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