‘When lawful acts can (and cannot) constitute economic duress’

“Even though economic ‘lawful act’ duress exists in English law, its scope in contractual negotiations is ‘extremely limited’. To set aside a contract under lawful act duress, the defendant must have applied illegitimate pressure on a party which causes that party to enter into a contract. Bad faith is not, without more, enough to trigger economic duress. There must be something more morally reprehensible. The commercial pressure exerted by the large airline on a small ticketing agent, no matter how ‘hard-nosed’, was not illegitimate and their agreement was not therefore voidable: Pakistan International Airline Corp v Times Travel (UK) Ltd [2021] UKSC 4 …” (more)

[Ishmeet Kaur, Allen and Overy – Compact Contract, 22 September]

First posted 2021-09-23 13:00:37

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