business law: Contracts serve as guidance in working relationships

Duress as Defense?
AUTHOR
BUSINESS LAW
INSTITUTION
Abstract.
Contracts serve as guidance in working relationships. They outline the role of each party presented in the contract. Hence, failure to fulfill ones obligations is termed as breach of contract. However, it is important that one clearly understands the terms of the contract. People enter contracts for several reasons. These contracts are signed under different circumstances. One of these circumstances is duress as outlined by this paper. The paper seeks to clarify under what circumstances one may use duress as defense for breaching a contract.
In jurisprudence, duress refers to a situation where a person is pressured into performing a certain act. They may perform the act as a result of violence or being threatened. Hence, they are coerced into doing what they would not do under normal circumstances. It has two aspects. First and foremost, it negates the person`s consent to an act. Thus if it was in relation to a contract, then if the person claims that they entered a contractual agreement while under duress, then they are absolved of any obligation that the contract holds them to. The contract would be declared void. Secondly, duress may be used as a possible legal defense as explained by Larry and Leroy (2006).
In contract law, duress is termed as a threat made to a person to compel them into performing an act that would work to the advantage of the other person with whom in most cases they have a contractual agreement. Duress is classified into physical duress and economic duress. If one party wishes to set aside a contract for duress, then they need to prove that they were threatened and that it was the only reason they entered the contract. Courts frown at this because they cannot determine the mutual assent between the two parties.
Bart served as an assistant manager to Sav-On Drugs. He was accused of theft and embezzlement: crimes he admitted to. A day later signed a contract promising to repay the company $20...