![]() ![]() 1 nature of the threat must be sufficient to amount If a party is able to prove they were coerced into a contract due to a threat of There are three types of duress in the commons law.ĭuress to the person occurs when one party to a contract forces another to contract A third party can acquire good title to goods even though his vendor hasĪcquired those goods pursuant to a contract which was brought about by NOS’s claim based on economic duress thus had to fail. The Court found in favour of HC because NOS made the increased payments without protest and affirmed the contract. However, NOS started a claim for the return of the 10% increase a year after the tanker’s delivery on grounds of economic duress. At the time of the dispute, NOS was close to reaching a lucrative agreement regarding the tanker’s chartering, so to avoid losing this deal. they either accept HC’s demand for a 10% price increase or HC will terminate their contract. NOS rejected the claim and paid the following two instalments based on the original price. After the first instalment was paid, the US dollar’s value went down by 10%, so HC claimed a 10% increase in the building price in response. ![]() HC opened a letter of credit as security repayment of instalments in the event of default. In North Ocean - Shipbuilders Hyundai Construction (HC) agreed to build a tanker for North Ocean Shipping (NOS) for a fixed price, which was to be paid in five instalments, in US dollars. Meaning in order to succeed in a claim (or defence) on duress the victim ofĭuress will need to protest at the time or shortly thereafter. The party subject to the duress must act promptly to set aside the In order to rely on Duress to renders a contract voidable following criterion must be If they choose not to affirm the contract, it is void. They have the ability to affirm or not toĪffirm the contract. Victimized party is treated as revocable. THE EFFECT OF DURESS:ĭuress renders the contract voidable, rather than void. (economic duress) to enter into the contract.ĭuress is illegitimate pressure which vitiates the consent of a party to a contract. In the context of contract law, the doctrine of duress is defined as some form ofĬoercion or threat to the person, property, or to a person’s financial interest
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