Duress Case Study

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Extra Credit
Please respond to the following in short answer/essay format. Please illustrate your answers and interpretation of the text as clearly as possible.
1. a. What are the two types of duress and what is the effect of each on the contract involved.
The two types of duress are physical compulsion, which is a violent way to force someone to sign a contract. It can be pointing someone with a gun. Improper threats, which includes economic and social coercion. Physical compulsion renders the contract void, and improper threats renders the contract voidable by the party who was coerced. b. Give an example of each type of duress.
An example for physical compulsion will be Sam pointing a gun to Lucia 's head forcing her to …show more content…

If Lucia does not sign the contract, Sam will tell Lucia 's boyfriend that she cheated on him. Lucia knows that she made a mistake one night, so she signs the contract because she does not want to lose her boyfriend over a mistake. c. Who does the law intend to protect by reason of the defense of duress? And Why does the law protect this type of person?
The law intends to protect those who other people take advantages just because they are or look weak. It also protect those who are shy and without a lot of experience. The law protects these kind of people because they usually cannot defend themselves, so they tend to be more vulnerable to threats.
2. Mel owns a neighborhood grocery store that he would like to sell. Katrina is interested in purchasing the business, but she is concerned because she knows that Mel has built up a lot of goodwill over the years, and she wonders whether Mel might not just open another store down the block and take all of the business from the old store with him. Katrina asks for and receives from Mel a clause in the sales agreement that Mel will not open another grocery store within a 150-mile radius of the old store for a period of at least ten …show more content…

There are four ways where they can do this, and those are: mutual rescission, substituted contract, accord and satisfaction, or novation. Mutual rescission is when the parties accept to terminate their duties under the contract. Substituted contract is when the parties agree to create a new contract where they are satisfied with their duties. Accord and satisfaction is when one of the parties take a different duty or role from the original contract where the other party is satisfied with it. Novation is when the original person cannot keep being in the contract, so he/she brings a new

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