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1The Effect of DuressDuress render the contract voidable, rather than void.
However, the party subject to the duress must act promptly to set aside the contract once duress has been removed.
2Forms of duress1) Duress to the person - threats of violence
2) Duress to the goods - threats to destroy or take away good
3) Economic Duress - unacceptable commercial pressures, not necessarily unlawful
3Pao On V Lau Yiu Long- Failed in its claim
- There must be present some factor ‘which could in law be regarded as a coercion of his will so as to vitiate his consent.'
- Lord Scarman
4Universe Tankships of Montovia V International Transport Workers FederationThe ITWF blacked a ship, The Universe Sentinel, to prevent it from leaving port unless they paid to a welfare fund.
Two elements of duress were identified:
1. Compulsion of the will - absence of choice
2. Illegitimacy of the pressure
5Indicators of Duress - Lord Scarman in Pao On V Lau Yiu Long1. Did the person who was allegedly coerced protest at that time?
2. Did this person have an alternative course of action?
3. Was the person independently advised?
4. Did the person take steps to avoid the contract once they had entered it?
6North Ocean Shipping V Hydundai ContructionParty had not registered a protest once the duress had been removed;
made payments without qualifications;
delay between making the final payment and protesting of the duress.
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