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Legal Topics > Business > Commercial Law and Contracts > Breach of Contract

What Is Duress?

Duress occurs when a person is influenced to sign a contract under pressure.  Typical examples of duress include threats to personal liberty, threats of actual violence, and excessive economic pressure.  If you sign a contract under duress, the court may find the entire contract invalid. 

Duress and Contracts

Duress occurs when a person has been forced to do something by means of a threat.  A person may raise a duress defense when force or violence is used to compel him to enter into a contract or to discharge one.  When a person raises a duress defense, the accused asserts that the contract should be invalid because he did not voluntarily enter into the contract.  A person who enters into a contract under duress may cancel or breach that contract 

Economic Duress

Another form of duress in contracts law is economic duress.  This form of duress is commonly found in commercial contract disputes.  Economic duress occurs when one party uses economic pressure to unfairly force another party into a contract.  Courts will look very closely at the nature of the economic duress to determine if the pressure is unfair.  However, not all threats to breach a contract will constitute economic duress, especially if the threats were lawfully made.

What Can You Do if You Enter into a Contract under Duress?

If you are sued for breaching a contract  or you made a contract under conditions you think might constitute duress, you should speak to a lawyer immediately to learn more about your rights, possible defenses, and how to deal with the complicated legal system.

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