IBL Lecture 8 - Autumn 2009

Thecontractspecifiedafixedpriceinusdollarspayableinfiv

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Unformatted text preview: d threat not to release the helicopter without payment was duress of goods. The court was satisfied that the only reason Helicopter Charters signed the document was to get the helicopter back, therefore the agreement was voidable. Economic duress Economic duress is a recent invention of the law, about 30 years old. Therefore, it is still developing as a legal concept. It involves threats to the promisor’s economic interests. To establish economic duress, two questions need to be answered in the affirmative (McHugh JA, Crescendo Management Pty Ltd v Westpac (1988) 19 NSWLR 40 at 46): Whether any pressure induced the contract (the pressure being one of the reasons the victim entered the contract); and Whether the pressure went beyond what was legitimate (which it will if it consists of unlawful threats or if it amounts to unconscionable conduct. See North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd (“The Atlantic Baron) [1979] 1 QB 705. North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd (“The Atlantic Baron) [1979] 1 QB 705 Co Facts: Facts: North Ocean contracted with Hyundai to build a ship, called “The Atlantic Baron”. The contract specified a fixed price in US dollars payable in five installments. Afte...
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