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Economic Duress Contract Analysis
Summary
Economic duress can render a contract voidable if an illegitimate threat leaves the victim with no reasonable alternative, compelling them to agree. In the scenario, Carrbon and Airfill may argue economic duress as Carrbon faced a threat with no alternatives, and Airfill was pressured into reducing prices. To proceed, gather evidence of threats, document communications, and seek legal advice for formal complaints or legal action.Full Conversation
please list the facts of these cases
Here are the brief facts of the cases you mentioned:
*. Universe Tankships Inc. of Monrovia v. International Transport Workers Federation (The "Ivan Sorokin") [*] * Lloyd's Rep * (HL):
- Facts: Universe Tankships' vessel was "blacked" by the ITWF, preventing it from leaving port. Universe Tankships agreed to pay money to the ITWF under economic duress to have the "black" lifted.
*. Pau On v. Lau Yiu Long [*] AC *:
- Facts: Pau On agreed to sell shares in a company to Lau Yiu Long. A subsequent promise by Lau Yiu Long not to sell the shares for a year was made without consideration. The validity and enforceability of this promise were questioned.
*. Atlas Express Ltd v. Kafco (Importers and Distributors) Ltd [*] QB *:
- Facts: Kafco agreed to pay Atlas Express for the transport of goods. Atlas later demanded higher charges, and Kafco paid under protest. The issue was whether this constituted economic duress.
*. C.N.Here are the brief facts of the cases you mentioned:
*. Universe Tankships Inc. of Monrovia v. International Transport Workers Federation (The "Ivan Sorokin") [*] * Lloyd's Rep * (HL):
- Facts: Universe Tankships' vessel was "blacked" by the ITWF, preventing it from leaving port. Universe Tankships agreed to pay money to the ITWF under economic duress to have the "black" lifted.
*. Pau On v. Lau Yiu Long [*] AC *:
- Facts: Pau On agreed to sell shares in a company to Lau Yiu Long. A subsequent promise by Lau Yiu Long not to sell the shares for a year was made without consideration. The validity and enforceability of this promise were questioned.
*. Atlas Express Ltd v. Kafco (Importers and Distributors) Ltd [*] QB *:
- Facts: Kafco agreed to pay Atlas Express for the transport of goods. Atlas later demanded higher charges, and Kafco paid under protest. The issue was whether this constituted economic duress.
*. C.N.
*. Universe Tankships Inc. of Monrovia v. International Transport Workers Federation (The "Ivan Sorokin") [*] * Lloyd's Rep * (HL):
- Facts: Universe Tankships' vessel was "blacked" by the ITWF, preventing it from leaving port. Universe Tankships agreed to pay money to the ITWF under economic duress to have the "black" lifted.
*. Pau On v. Lau Yiu Long [*] AC *:
- Facts: Pau On agreed to sell shares in a company to Lau Yiu Long. A subsequent promise by Lau Yiu Long not to sell the shares for a year was made without consideration. The validity and enforceability of this promise were questioned.
*. Atlas Express Ltd v. Kafco (Importers and Distributors) Ltd [*] QB *:
- Facts: Kafco agreed to pay Atlas Express for the transport of goods. Atlas later demanded higher charges, and Kafco paid under protest. The issue was whether this constituted economic duress.
*. C.N.Here are the brief facts of the cases you mentioned:
*. Universe Tankships Inc. of Monrovia v. International Transport Workers Federation (The "Ivan Sorokin") [*] * Lloyd's Rep * (HL):
- Facts: Universe Tankships' vessel was "blacked" by the ITWF, preventing it from leaving port. Universe Tankships agreed to pay money to the ITWF under economic duress to have the "black" lifted.
*. Pau On v. Lau Yiu Long [*] AC *:
- Facts: Pau On agreed to sell shares in a company to Lau Yiu Long. A subsequent promise by Lau Yiu Long not to sell the shares for a year was made without consideration. The validity and enforceability of this promise were questioned.
*. Atlas Express Ltd v. Kafco (Importers and Distributors) Ltd [*] QB *:
- Facts: Kafco agreed to pay Atlas Express for the transport of goods. Atlas later demanded higher charges, and Kafco paid under protest. The issue was whether this constituted economic duress.
*. C.N.
Carrbon are a petrol producing company. They are building an oilig in the North Sea and they make a contract with Rigit for diving services. After Rigit have started to perform the contract, the price of hiring divers goes up and Rigit realise they are going to make a loss.
They tell Carrbon that they cannot carry on with the contract unless the contract price goes up by *%. Carrbon have no choice but to agree to pay the extra as they cannot get diving services elsewhere at such short notice. Afterwards, they complain to Rigit and refuse to pay the extra *%.
Rigit obtain their compressed air cylinders from Airfill. Airfill rely on Rigit for much of their trade. Rigit are keen to cut costs. They tell Airfill that, if they are to place any more orders, Airfill have to cut the cost of their cylinders by *%. Airfill make it clear that they are not happy about this, but feel they have no choice but to agree.
• Advise Carrbon and Airfill whether their contracts with Rigit are voidable on the basis of economic duress. [*]
For economic duress, a contract can be voidable if:
- There was an illegitimate threat.
- The victim had no reasonable alternative.
- The threat induced the victim to enter the contract.
Carrbon and Airfill may argue economic duress:
- Carrbon faced an illegitimate threat with no reasonable alternative.
- Airfill was pressured into reducing prices against their will.
Would you like more specific details on how to proceed with these claims?
- There was an illegitimate threat.
- The victim had no reasonable alternative.
- The threat induced the victim to enter the contract.
Carrbon and Airfill may argue economic duress:
- Carrbon faced an illegitimate threat with no reasonable alternative.
- Airfill was pressured into reducing prices against their will.
Would you like more specific details on how to proceed with these claims?
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You have a potentially strong case for economic duress. Here are more specific details on how to proceed:
*. Gather evidence of the threats and lack of alternatives.
*. Document communications and agreements made under pressure.
*. Seek legal advice for drafting a formal complaint or initiating legal action.
Would you like assistance in finding a lawyer or more detailed steps on how to document the evidence?
*. Gather evidence of the threats and lack of alternatives.
*. Document communications and agreements made under pressure.
*. Seek legal advice for drafting a formal complaint or initiating legal action.
Would you like assistance in finding a lawyer or more detailed steps on how to document the evidence?
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