Geometry Co.manufactures microchips for electrical products.Jojoba monopolizes the supply of gallium arsenide,which is used heavily in the manufacturing of microchips.Because of this monopoly and the demand for microchips,Geometry enters into a long-standing agreement with Jojoba for 20 years.For the first couple of years,due to the huge demand for the microchips,Geometry insisted on timely delivery of the raw material.However,once the demand slumped,Geometry asserted economic duress to avoid the contract.Will Geometry be successful?
A)Yes,because Geometry was forced to enter the contract due to Jojoba's monopoly over the supply of the raw material.The consent was not free.
B)No,because the facts prove that Jojoba had not caused any undue duress.
C)Yes,because there was economic duress and thus the contract is voidable at Geometry & Co.'s discretion.
D)No,because Geometry has already taken benefits under the contract for two years.

Question

Quizplus · Accepted Answer

Geometry had willingly entered the contract and had benefited when the demand was high.Therefore,there is no case of economic duress here and Geometry cannot rescind the contract it has entered.