Duress

Question 1

3 types of Duress

Answer 1

1) Physical Duress: Sign this or die
2) Duress of Goods: retaining goods belonging to someone else in an unacceptable manner
3) Economic Duress: Past the point of normal commercial pressure

Question 2

Economic Duress requires

Answer 2

1) pressure amounting to Compulsion of the Will
2) Illegitimacy of that pressure
North Ocean Shipping v Hyundai
The Universal Sentinel
Pao On

Question 3

Pao On 4 factors to determine Duress

Answer 3

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?

Question 4

Commercial Pressure

Answer 4

there is a fine line between Economic Duress and Commercial pressure:
Alec Lobb v Total Oil

Question 5

Duress of Goods

Answer 5

Refusing to provide goods that are not legally owned

The Alev

Question 6

Economic Duress more likely if:

Answer 6

• Party can perform but refuses in bad faith or for more $
• Party insists on additional payment or better terms
• Innocent party pays under protest
• There exists no alternative for the Innocent party

Question 7

Economic Duress Less Likely if:

Answer 7

• genuine difficulties/problems to perform
• No intention to exploit
• Party alleging duress is not vulnerable
• party alleging duress has realistic alternative court of action