BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS LAW

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
True or False:Duress occurs when one party to a contract uses threats to obtain an agreement.
A
True
B
False
Explanation: 

Detailed explanation-1: -In contract law, duress is used as a form of defense to a crime where the defendant uses threats to force the plaintiff to commit a crime that is against their wishes. A party who is forced into an act or contract under duress can rescind the contract, rendering it null and void.

Detailed explanation-2: -Duress, in a contractual context, refers to a situation where a person is pressured into signing a document they would not have signed without that pressure. The most common form of duress is coercion. That is, when another person threatens you if you don’t sign the contract.

Detailed explanation-3: -Economic duress in contract occurs, for example, where a party to a contract (A) threatens to cancel the contract unless the other party (B) agrees to their demands and B has no other practical option but to agree to the new terms of the contract.

Detailed explanation-4: -30) Duress is said to have occurred only where a threat involved a physical harm. complete or partial destruction or manipulation of content. 32) A threat to bring a civil lawsuit unless someone enters into a contract constitutes duress. persuading that person to enter into a contract constitutes duress.

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