Contracts: Defenses: [D] Duress (economic duress)

  • Duress [economic duress]
    • Can’t threaten someone with physical harm.
    • Economic duress – look for
      • Threat to break existing contract, unless person gets a better deal
      • Other party agrees only because he needs to get 1st deal done.
      • There are no reasonable alternatives.
        • S contracts to sell B 100 gizmos for $1,000. S later refuses to deliver gizmos unless B also agrees to buy 50 doodads for $800. S is the only source for the gizmos, which B needs right away. B agrees to buy the doodads. The agreement to buy the doodads is not enforceable. The only reason B agreed is because of economic duress.