Global Transportation Finance Newsletter - September 2019

Vedder Price
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In This Issue –

Economic duress: will English law assist a party who enters into a contract as a result of a lawful threat of causing economic harm?

A Bird on the Ground is Worth One in the Sky: Lessons from ALC v. Far Eastern Air Transport Corp.

Economic duress: will English law assist a party who enters into a contract as a result of a lawful threat of causing economic harm?

It is clear that English law permits a party to avoid a contract on the grounds of economic duress but there is some uncertainty as to the circumstance in which a contract may be avoided for economic duress. Requiring particular clarification are cases involving lawful act duress—will English law provide protection where a contract results from a threat of a lawful act (or omission) to cause economic harm? This question was considered by the Court of Appeal in Times Travel (UK) Limited v Pakistan International Airlines Corporation.

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