CTN Cash and Carry Ltd v Gallagher Ltd [1994]

Facts

  • A buyer paid money to a supplier which he believed owed, though it wasn’t, to prevent the supplier removing the buyer’s credit facilities
  • The buyer attempted to recover the money paid

Issue

  • Was the payment made under duress; as such could it be recovered

Decision

  • No recovery, claim dismissed

Reasoning

  • The supplier was entitled to remove the credit facilities for any reason, and the money was paid with good intentions
  • It could not be recovered

An extension capable of covering the present case, involving “lawful-act duress” in a commercial context in pursuit of a bona fide claim, would be a radical one with far-reaching implications. It would introduce a substantial and undesirable element of uncertainty in the commercial bargaining process.

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Posted in Contract Law Revision Notes.

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