What is an example of economic duress?
Economic (social) duress can lead to a voidable contract. Unlike physical duress, economic duress will arise if one party uses an economic or social position as a threat for one party to enter into a contract.
Below is an example of economic duress:
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Why would a contract be voidable?
A voidable contract, unlike a void contract, is a valid contract which may be either affirmed or rejected at the option of one of the parties. There are a number of reasons as to why a contract could be voidable. Some examples include fraud in the inducement, economic (or social) duress, innocent misrepresentation, undue influence, […]
What is an example of fraud in the inducement?
Fraud in the inducement can result in a voidable contract. Fraud in the inducement is when one party is aware that he or she is entering into a contract, but the terms of the contract are materially misrepresented. This can be done innocently and will make the contract voidable to the party that has been […]
What is an example of innocent misrepresentation?
Innocent misrepresentation has all of the same foundations of fraud except it does not have scienter. So in this case, the representing party would not known that they are committing fraud. Innocent misrepresentation results in a voidable contract. Below is an example of innocent misrepresentation: