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   Home      CTN Cash & Carry v Gallagher
CTN Cash & Carry v Gallagher [1994] 4 All ER 714 Court of Appeal

The defendants sent a consignment of cigarettes to the wrong address. The cigarettes were then stolen. The defendant mistakenly believed that the cigarettes were at the claimant's risk and sent them an invoice. The defendant threatened to withdraw the claimant's credit facility unless the invoice was paid. The claimants needed the credit facilities and so paid the invoice and then sought to reclaim the money on the grounds of economic duress.

Held: The threat to withdraw credit facility was lawful since under the terms of the credit agreement credit could be withdrawn at anytime. Therefore the threat was legitimate and consequently, economic duress could not be established.

Back to lecture outline on Duress in Contract Law