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Contract - Duress (Types of duress (Duress to the person (Barton v…
Contract - Duress
Types of duress
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Duress to goods
The Siboen and the Sibotre (1976) per Kerr J: "If I should be compelled to sign a contract under an imminent threat to have my house burnt down, I do not think that the law would uphold that agreement."
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Unlawful detention of another's goods - more complex - similar to physical duress in that there is a bad faith element that goes beyond hardnosed business
Economic duress
Emerging doctrine - first recognised in The Siboen and the Sibotre #
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Discretionary test - usually occurs when there is time pressure involved - need to know facts of cases in terms of what the pressure point was
Must be pressure, resulting in...
a) Lack of practical choice for the victim,
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B&S Contracts & Design Ltd v Victor Green Publications Ltd (1984) - B&S went on strike and tried to pass cost onto the customer - cancellation of contract would have caused serious damage to defendant's economic interests
Atlas Express v Kafco Ltd (1999) - like Traxpo, Atlas realised they would make a loss and told Kafco that they wouldn't deliver for Christmas time - heavily reliant and had no alternative
b) Which is illegitimate, and
Factors to consider
- Threatened breach of contract? # # #
- Was pressure applied in good or bad faith?
North Ocean Shipping v Hyundai (The Atlantic Baron) - lengthy delay - contract confirmed - contrast with immediate action to avoid
Universe Tankships Inc of Monrovia v International Transport Workers' Federation (The Universal Sentinel) (1983)
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If there is no illegitimate pressure, there is no duress
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Per Dyson J, DSND Subsea v Petroleum Geo Ltd (2000)
Affirmed in Carillion Construction Ltd v Felix Ltd (2001) - Felix knew they were only people able to supply cladding in time and Carillion needed to avoid heavy fees for late competition #
Kolmar Group AG v Traxpo Enterprises Ltd (2010) - Traxpo refused to release ship and checmicals until Kolmar agreed a variation - needed to satisfy order to very important client who needed it urgently #
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