Duress

Definition

Duress refers to a situation where one party to a contract is forced or threatened into agreeing to the contract against their will. This coercion can take many forms, including physical threats, psychological pressure, or economic coercion. When a contract is formed under duress, it may be deemed unenforceable because the consent given was not truly voluntary.

5 Must Know Facts For Your Next Test

1. Duress can invalidate a contract because it undermines the fundamental principle of free consent.
2. There are two primary types of duress: physical duress, which involves threats of harm, and economic duress, which involves threats to one's financial stability.
3. The burden of proof lies on the party claiming duress to show that they were coerced into entering the contract.
4. Contracts signed under duress are considered voidable, meaning the coerced party can choose to affirm or void the contract once the duress has ended.
5. Courts often look for clear evidence of the coercive tactics used when evaluating claims of duress in contract disputes.

Review Questions

• How does duress affect the enforceability of a contract?
  • Duress affects the enforceability of a contract by compromising the voluntary nature of consent. When one party is forced or threatened into entering an agreement, their consent is not genuine, making the contract potentially voidable. Courts recognize that agreements made under duress lack the essential element of free will, which is critical for a valid contract.
• Compare and contrast duress and undue influence in the context of contract formation.
  • Duress involves overt threats or coercion that force someone to agree to a contract, while undue influence refers to more subtle manipulation where one party takes advantage of a position of power over another. In both cases, the affected party's consent is compromised, but the means by which this occurs differ significantly. Understanding these distinctions is essential in evaluating whether a contract can be enforced.
• Evaluate how different types of duress can influence legal outcomes in contractual disputes.
  • Different types of duress can lead to varying legal outcomes in contractual disputes due to how they are perceived by courts. Physical duress may result in a stronger case for invalidating a contract compared to economic duress, which requires proof that the economic threat left no reasonable alternative. Courts analyze the severity and context of each type of duress to determine if the contract should be voided or upheld. This evaluation directly impacts how justice is served and the remedies available for the coerced party.

Related terms

coercion: The act of compelling someone to act against their will by using threats or force.

undue influence:

A situation where one party takes advantage of their position of power over another party, leading to an unfair agreement.

voidable contract:

A contract that may be legally canceled by one party due to circumstances like duress, fraud, or misrepresentation.