Economic Duress Flashcards

-(Name) may have a claim under economic duress against (name) as…
- Economic duress is when someone enters into a contract as a result of financial threats such as the threat to damage a business or person financially

• The key requirements are that there must be pressure which is illegitimate, leaves the victim with no no real choice and causes them to enter into the contract (Universal Tankships)
• Fully explain and apply the case to the scenario

• The court in the case of Poa On identified the following factors to help decide whether economic duress was present:
  1- Did the person claiming to be coerced protest about the pressure
  2- Did that person have any other available course of action that was reasonable.
  3-Were they independently advised before taking the action?
  4-Did he or she take steps to make the contract void
  -Side rule- If the threat was lawful, it is not economic duress (CTN Cash&Carry vs Gallagher)

• The D cannot claim damages but can instead ask for the court to make an order for the restitution (Giving back) of property or money extracted under duress, and also the avoidance of any contract that has been induced by it.
• Restitution is an equitable remedy that restores a person to the position they would have been in if not for the improper action of another.