5. Economic Duress, undue influence and unconscionability

5. Economic Duress, undue influence and unconscionability -...

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Economic Duress (Refer to Page 380) Introduction: Exerting pressure to induce a party to enter a contract is necessary and acceptable. When it exceeds what is considered acceptable or legitimate, the contract would be voidable by the pressured party. Duress - Pressure exerted through the device of a threat to physically harm the other party or his property would be considered illegitimate. Commercial Pressure (Economic Duress) – pressure exerted by a party in a stronger bargaining position or a party with have lesser to lose commercially. The consent from the other party was overborne by compulsion so as to deprive him of any animus contrahendi (intention to contract) as a result of illegitimate pressure. usually in the form of a threat to breach an existing contract exerted to induce an existing contract Case: North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd Basis for intervention – to demand relief Pressure does not constitute economic duress
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