What Is a Duress in Contract Law
What Is A Duress In Contract Law?
In contract law, duress refers to a situation in which someone is forced to enter into a contract under the threat of harm or coercion. Duress can occur in many different contexts, but it is most commonly associated with contracts that involve the exchange of money or other valuable assets. When a person is placed under duress, they are not acting freely and their consent to the contract is considered to be invalid.
Types of Duress
There are two main types of duress in contract law: physical duress and economic duress.
Physical duress occurs when a person is threatened with violence or harm if they do not agree to the terms of a contract. For example, if someone is held at gunpoint and forced to sign a contract, this would be considered physical duress.
Economic duress, on the other hand, occurs when someone is threatened with financial harm if they do not enter into a contract. For example, if a contractor threatens to walk off a job if they are not paid more money, this would be considered economic duress.
Legal Consequences of Duress
If a contract is entered into under duress, it is generally considered to be voidable. This means that the person who was placed under duress can choose to either enforce the contract or cancel it. If they choose to cancel the contract, they can seek to recover any damages they suffered as a result of the contract.
In some cases, duress can even lead to criminal charges. For example, if someone uses physical duress to force someone into signing a contract, they may be charged with assault or kidnapping.
How to Prove Duress
Proving that a contract was entered into under duress can be difficult, as it often involves one person’s word against another’s. However, there are a few key factors that can help establish that duress occurred:
– There must be a threat of harm or coercion, whether physical or economic.
– The threat must be serious enough to overcome the person’s free will.
– The person must not have had a reasonable alternative to entering into the contract.
If all of these factors are present, it is more likely that a court will find that duress occurred.
Duress is a serious issue in contract law, as it undermines the idea of free and voluntary consent. If you suspect that you have been placed under duress in a contract, it is important to speak with an experienced attorney who can help you understand your options. By taking the appropriate legal action, you may be able to recover damages and protect your rights.