Dimskal Shipping Co SA v International Transport Workers Federation [1992] 2 AC 152

House of Lords

Basic Facts: C (Dimskal Shipping) was coerced by D (ITWF) into signing contracts under threat of blacklisting their ship, resulting in payments totaling $140,000. C sought a declaration of economic duress.

Issue for the Court: What constitutes economic duress and its effect on contracts?

Held : The court held that duress makes a contract voidable if it was a significant factor in the coerced party's decision, even if the act threatening duress was lawful.

• Lord Goff affirmed that economic duress renders a contract voidable and can arise even from lawful acts if they involve illegitimate pressure.

💡Leveluplaw : This case defined the nature of economic duress and established that even lawful acts can constitute duress if they involve illegitimate pressure, impacting the validity of contracts.