Duress and Economic Duress Q&A

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These law notes cover Duress and Economic Duress with Questions and Answers. This chapter provides model answer to an essay question duress is without rational foundation and unjustifiably violates the basic principle of freedom of contract. Moreover, this chapter looks at Inequality of bargaining power and the rationale for unconscionable bargains, duress, and undue influence. Lastly this chapter looks at a problem question on economic duress with key cases and highlights additional reading that will help the student get the best possible marks in an economic duress question. These notes will show as student how law essays and problems should be tackled and how advice should be given in a simple form.

Question 1

“The doctrine of duress is without rational foundation and unjustifiably violates the basic principle of freedom of contract.” Critically discuss.

Question 2

Inequality of bargaining power was the rationale for unconscionable bargains, duress, and undue influence. Discuss.

Question 3

Xavier is an importer of fine wines from California into the UK. He has recently secured a contract for the sale of a consignment of wine to ‘Boozy Goods’, a UK based chain of wine retailers. He agreed with Boozy Goods that he would deliver 50 cases of wine to 5 separate shops in England. Xavier then contracted with Haulage Inc, a firm he regularly uses, for the delivery of the wine to the 5 shops on June 10^th for a total of £300

On the 7^th of June Haulage Inc called Xavier and told him that they had underestimated the weight of the wine and the mileage and that the correct price was actually £800. When Xavier refused to pay the extra amount Haulage Inc. threatened to cancel the agreement. They additionally stated that if Xavier does pay the extra amount they would in fact make 2 free deliveries for him on another occasion.

Xavier was not able to secure the services of another haulage company due to the short notice. He rang ‘Boozy Goods’ and attempted to change the delivery date. They were unsympathetic and told him that if the delivery was late they would never do business with him again and that they would sue him for breach of contract.

Xavier rang Haulage Inc and said that he reluctantly agrees to their terms. He also agrees for 2 additional deliveries to be made on another occasion. When the bill arrives at the end of the month Xavier pays the £800. 2 weeks later Xavier has had second thoughts and wants to reclaim the £500.

Explain Xavier’s legal position