Genuine Agreement and Recission. Mollie DeJesus. Opening question. Two parties are making a contract. (Party A and party B). If party B physically threatens party A to sign the contract, what can party A do in order to get out of signing the contract?. Important terms.
The act of two parties agreeing on a contract without the presence/ occurrence of threats or foul play to obtain the contract.
The contract will be voidable and the injured party can back out of the contract legally. Recissionwill occur. The injured party can request the return of what they gave, and in turn give back what they received.
-Even if a party does not follow through with their threat, it is still a crime. If a threat is made, tort is committed or crime is committed in order to win an agreement, it will always be classified as duress.
-The crime/tort/threat may involve, but is not limited to, the physical life, liberty, or property of the victim, the victim’s immediate family or near relatives.
-Threatening to sue a party is legal, but threatening to sue a party in order to scare them into ratifying a contract is yet another example of duress.
-In other words, if a threat is made for a purpose unrelated to the suit, it is duress.
During divorce negotiations, a husband threatens to sue for custody of the children if the wife doesn’t sign over valuable shares of stock. Because he doesn’t really want custody of the children, this threat to sue, makes the contract for the stock voidable. If the threatened suit is completely groundless, a resulting contract may be voidable for duress.
An elderly person, who is dependent on one child for daycare, may sell her home to that child for half its value.