Austin Instrument, Inc. v. Loral Corp.
Supreme Court of New York
316 N.Y.S.2d 528 (1970)
Loral Corp. (defendant) sought additional parts from Austin Instruments (plaintiff) for a second Navy radar contract; Austin, in the midst of negotiations, demanded retroactive price increases on the parties' first contract and the right to supply similar parts on the second, then stopped delivering under the first contract when Loral did not immediately agree. Loral contacted several other suppliers but never actually tried to obtain the specific items due under the first contract from them, then warned Austin it faced severe Navy-contract consequences and had no choice but to meet Austin's terms. Loral later refused to pay the balance due, and Austin sued.
Whether a contract is void for economic duress if a party is not the victim of a wrongful or unlawful act or threat that prevents the victim from exercising free will and judgment.