-> a contract made where one of the parties has been forced into it should not be valid - can be forced into a contract by undue influence/duress/economic duress
-> undue influence - one party pressured to enter into a contract in circumstances where : there is a trusting relationship & one person will benefit at the expense of the other
-> duress - one party signs a contract as a result of pressure such as threats or violence used to persuade that party to sign the contract
economic duress definition
-> The Siboen and The Sibotre -> 'such a degree of coercion that the other party is deprived of his free consent and agreement' - lord kerr
-> Mckendrick -> where party uses its superior economic power in an illegitimate way so as to coerce the other party to agree to a particular set of terms
nature of threat
-> must be coercion of will, commercial pressure not sufficient
occidental world wide investment corp v skibs The Sibeon and Sibotre
-> OLD TEST
pressure
which must be illegitimate
other available course of action
significant cause of making the contract - must have been compelled into contract as a result of pressure
NEW TEST - times travel v pakistan international airlines
application of illegitimate pressure
caused C to enter the contract
C had no reasonable alternative other than to give in
consideration
-> if there is economic duress then there is no consideration as what would be viewed as consideration is not done voluntarily as part of a freely negotiated contract
remedies
-> make contract voidable
-> injured party entitled to put contract aside - unless express/ implied affirmation
-> must seek rescission as soon as economic duress stopped
-> court consider restitution - equitable and discretionary
restores person to pre contract position if not for improper action of the other party
