BUSINESS ADMINISTRATION
BUSINESS LAW
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
both the threat and the size of the threatened party
|
|
|
both the threat and the place where the threat occured
|
|
|
both the threat and the alternatives available to the threatened party
|
|
|
none of these
|
Detailed explanation-1: -Duress : the doctrine of Economic Duress At common law, the law has always recognized that a contract must be entered into voluntarily and that a person who entered into a contract as a result of threats against the person would not be bound by the contract.
Detailed explanation-2: -A contract induced by physical duress-threat of bodily harm-is void; a contract induced by improper threats-another type of duress-is voidable. Voidable also are contracts induced by undue influence, where a weak will is overborne by a stronger one.
Detailed explanation-3: -Economic duress refers to the coercion caused by putting the aggrieved party under the fear of causing an economic loss. It is an illegitimate fear, caused by the defendant party by initiating fear of terminating the already existing contract which may cause monetary loss to the other party. In the case of Pao On v.