The plaintiffs had chartered a vessel to hirers to carry the defendants goods. The hirers defaulted and the plaintiffs were in turn obliged to carry the goods but at extra costs which they passed on to the defendants who agreed to pay extra costs and not to detain or arrest the vessel while in port. This agreement was secured through threats, including a statement that unless the defendants paid the extra costs they would not get their cargo. When the ship was in port and had commenced unloading the defendants ignored the agreement and arrested the ship. They pleaded duress to any breach of contract and claimed damages.
Held: The agreement had been made under economic duress. The plaintiffs had issued an unlawful threat against the goods, and they knew that, since they were legally obliged to carry the cargo, even if at a loss of profit to themselves, such a threat would be unlawful.
Citations:
[1989] 1 Lloyds Rep 138
Jurisdiction:
England and Wales
Contract
Updated: 09 November 2022; Ref: scu.372853