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United Kingdom

Times Travel v PIA: lawful act duress not made out where party holds good faith belief, even if unreasonable; monopoly power left to Parliament (Court of Appeal, England and Wales)

Published on: 16 May 2019

Published by a LexisNexis Dispute Resolution expert
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Article summary

Times Travel (UK) LTD v Pakistan International Airlines Corporation [2019] EWCA Civ 828

What are the practical implications of this case?

This judgment makes clear that a contract will not be rescinded for economic duress where:

  • the pressure applied is lawful, and
  • the party applying that pressure genuinely believes they are entitled to act as they did, even if that belief might be criticised as unreasonable

The decision also underlines the limited statutory framework for commercial agreements, confirming that such contracts cannot be avoided simply because of the lawful use of a monopoly or disparities in power or bargaining strength. Any evolution of the law in these fields is a matter for Parliament rather than the common law...

What was the background?

Times Travel (TT), a small family-run travel agency in Birmingham, was in 2008 accredited by the International Air Transport Association (IATA) as a Passenger Sales Agent. In the same year, TT was engaged as an agent for the appellant, Pakistan International Airlines Corporation (PIAC). The parties’ agreement was not straightforward; however, the figure of 9% commission...

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