Category Archives: Contract Law

Pre-judgment Interest on Liquidated and Unliquidated Sums

Contract Law, Private Law

A creditor bringing an action will want interest too. Interest compensates for late payment. For the last 200 years, relief came from statutes. The common law did not recognize a right to pre-judgment interest. That position was relaxed in Sempra Metals v IRC [2008] 1 AC 561. Interest on debts and other claims for breach of contract were legitimised. Plaintiffs can now present claims for compound interest at common law, whereas statutory interest is always simple. Where the interval between cause of action and judgment is long and the sum is large, this is a superior option. In a recent Privy Council decision (Sagicor Bank Jamaica v YP Seaton[2022] UKPC 48), interest calculated on a compound basis was roughly 52 times greater than simple, and roughly 368 times the principal sum.

Schrödinger’s Lawful Act Duress: Dead or Alive?

Contract Law

Can you set aside a contract if you were induced to enter it by my application of lawful pressure that may threaten your economic interests, reputation, or your concern to protect a loved one? This raises difficult policies since the only viable basis for discriminating between acceptable and unacceptable pressures is not positive law but social morality. On the other hand, if lawful pressures are always exempt, those who devise outrageous but technically lawful means of compulsion must always escape. The courts have accepted that the categories of duress are not closed and that an illegitimate threat can include one which is lawful, although it must ‘at least be immoral or unconscionable’. What then falls within this category of lawful act duress?