Economic duress

Taber v. Paris Boutique & Bridal Inc. (Paris Boutique), 2010 ONCA 157 released today gives a useful summary of the law on economic duress:

 

[8]              There is no doubt that economic duress can serve to make an agreement unenforceable against a party who was compelled by the duress to enter into it.  Nor is there any doubt that the party can have the agreement declared void on this basis.

 

[9]              However, not all pressure, economic or otherwise, can constitute duress sufficient to carry these legal consequences.  It must have two elements: it must be pressure that the law regards as illegitimate; and it must be applied to such a degree as to amount to “a coercion of the will” of the party relying on the concept.  See: Stott v. Merit Investment  Corp., 63 O.R. (2nd) 545 (Ont. C.A.), at para. 89.