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force the other to make an alteration in his favour. In some long term relationships, one of the parties may be in a considerably weaker position compared with the other. For example where the party who has commissioned the construction of a ship which is close to completion urgently requires the vessel to be available for use on the agreed hand-over date, the ship builder could use his knowledge of the urgent requirements of the other party to extort some advantage by threatening not to complete on time. In these circumstances, the court could respond in one of two ways. Either the threat could be regarded as sufficient to amount to actionable economic duress, or any promise by the other party to make additional payments could be regarded as being unsupported by consideration.
DOI link for force the other to make an alteration in his favour. In some long term relationships, one of the parties may be in a considerably weaker position compared with the other. For example where the party who has commissioned the construction of a ship which is close to completion urgently requires the vessel to be available for use on the agreed hand-over date, the ship builder could use his knowledge of the urgent requirements of the other party to extort some advantage by threatening not to complete on time. In these circumstances, the court could respond in one of two ways. Either the threat could be regarded as sufficient to amount to actionable economic duress, or any promise by the other party to make additional payments could be regarded as being unsupported by consideration.
force the other to make an alteration in his favour. In some long term relationships, one of the parties may be in a considerably weaker position compared with the other. For example where the party who has commissioned the construction of a ship which is close to completion urgently requires the vessel to be available for use on the agreed hand-over date, the ship builder could use his knowledge of the urgent requirements of the other party to extort some advantage by threatening not to complete on time. In these circumstances, the court could respond in one of two ways. Either the threat could be regarded as sufficient to amount to actionable economic duress, or any promise by the other party to make additional payments could be regarded as being unsupported by consideration.
ABSTRACT
It may be questioned whether common law rules do truly facilitate commercial co-operation in long term relational transactions. The classical approach to variation (or ‘waiver of breach’) is to apply those rules which also apply to contract formation. The parties must reach an agreement either by deed or in accordance with the rules on consideration.
