Economic Duress

• Atlas express v Kafco

  • kafco created a contract for Atlas to deliver baskets to Woolworths
  • Atlas threatened to not deliver if they did not pay more
  • Kafco were forced to pay this- as they could not afford to lose the money from Woolworths
  • This is economic duress
• CTN Cash and Carry Ltd v Gallagher Ltd

  • pre-contract threat is not economic duress as there is not a contract there
• 'Pao on'- Rules for economic duress

  1. did the claimant protest?
  2. Did the claimant have any alternative to agree to the threat?
  3. Where the claimant independently advised?
  4. Did the claimant make steps to avoid this?
• North Ocean Shipping Co v Hyundai

  • The Atlantic Baron
  • Delays indicate economic duress
  • reluctance agreement is not economic duress