'Economic duress'

Front

What does Duress entail?

Back

Duress indicates a pressure that coerces the other party to contract for the benefit of the duressor.

Front

What are the elements of duress that the plaintiff must meet in order for the court to declare the contract unenforceable?

Back

• -The contracting party must have had illegitimate pressure put on them by the other party.

<-Due to that pressure, they must have been coerced into entering into the bargain.

Front

What constitutes as illegitimate pressure? Why?

Back

In the case of Wales, Tipping J made a point of law when he stated that: Illegitimate pressure is when one party has no reasonable alternative option to entering into the bargain with the other party.

*Maybe implement the cases of McIntyre, and Lee which may be relevant to the tutorial question.

Front

What is coercian?

Back

• Coercion constitutes an offer that is 'irresistible' to a reasonable man, who has no other choice but to contract with the other party on their particular terms.

Coercion does not override or destroy a person's will, it merely diverts it onto agreeing to contract with the other party.

Front

How can the court determine whether coercian was present?

Back

In the case of Pao, the court held that the inquiry into determining whether coercion was present in the case consists of three questions:

1) Did the victim protest or take any steps to void the contract?

2) Was there a practical alternative option available to the victim?

3) Did the victim receive independent advice?

Front

What does/ does not constitute as a practical option for the victim? Why?

Back

If the victim is placed under a threat of an unlawful detention, which may cause them to suffer severe financial consequences, then the victim is left with no alternative, practical choice. - DImskal.

However, if the victim has a practical option available to him, even if it does not align with his personal desires, the element of coercion may not be met in such a case - A-G.

*Implement the case of Pharmacy as it adds on to this flashcard question, but is not relevant to the tutorial question.