Which of the following would constitute an act of duress which would provide grounds for avoiding a settlement agreement?
A) a party's desperate need for money.
B) a party's compelling desire to end the dispute.
C) a party threatens to inflict personal injury or property damage.
D) another party's threat to end settlement negotiations.

Question

Quizplus · Accepted Answer

Duress occurs when one party uses force, coercion or threats to compel the other party to agree to a contract or settlement. Threatening to cause physical harm or damage to property is a clear example of duress, which would provide grounds for avoiding a settlement agreement. Desperate need for money or a compelling desire to end the dispute would not be enough to constitute duress. Another party's threat to end settlement negotiations is not an act of duress, but rather a negotiation tactic.

Which of the Following Would Constitute an Act of Duress