A valid contract is a legally enforceable agreement between two or more intellectually competent parties. Your signature on a contract confirms that you understand and agree to the terms, whether it`s an exchange or an agreement to do (or not do) something. But being forced to be coerced or deceived to sign a contract contradicts the concept of contract law. To successfully assert the defence of coercion, four elements must be demonstrated: physical coercion can be directed either against a person or against property. If a person wishes to withdraw from a previously concluded contract on the ground that it was concluded under duress, he must prove that the other party made a threat of injury and that this threat was the reason for entering into the contract. The burden of proof then shifts to the other party, who must prove to the court that the threats against the person did not force him to conclude the contract. This article contains general legal information, not legal advice. Rocket Lawyer is not a law firm or a substitute for a lawyer or law firm. The law is complex and changes often. For legal advice, please contact a lawyer. Nevertheless, people sometimes sign contracts under duress or due to undue influence or coercion. These are all legal terms that refer to dubious tactics, and they can invalidate a contract. Read on for answers to any questions you may have about signing under duress and challenging a contract you didn`t sign voluntarily.
While there is no law in the United States that states that writing some form of ”under duress” near your signature or anywhere on the contract makes the contract questionable, some sources suggest that this is a possible tactic. In some cases, economic coercion can be used to terminate a contract. Economic coercion is often found in commercial contractual disputes. Economic coercion occurs when one party exerts economic or financial pressure to unfairly force another party to enter into a contract. The courts will examine very carefully the nature of the right to economic coercion to determine whether the pressure is unjust. An example of economic coercion is when a party threatens to break a contract in ”bad faith” or threatens to hold a convicted person. Before signing any type of contract, you must ensure that you have read the document in its entirety and that you understand all the content. Undue influence over signing a contract is much more subtle than coercion or coercion and involves persuasion – much like a scammer works.
Courts generally consider relationship dynamics and patterns of behavior when determining undue influence, not just one or a few specific actions. If you are under duress, you will be fully aware of what you are doing, but act against your own will. For example, coercion occurs when an accountant`s accountant plays a very crucial role in an organization, whether it is a multinational or a small national company. He is forced to sign a document authorizing the transfer of funds to another person with a weapon pointed at the head. If the accountant refuses to sign the document, he is immediately threatened with bodily injury or even death. The accountant can sign the document and later cancel the contract using coercion as a defense in court. If it can be proved that one of the parties who signed the contract was under duress, the contract may be considered voidable. As a general rule, an investigation into the circumstances of the contract would take place. The relationship between the parties is usually examined to see how it may have affected someone who feels compelled to sign.
Coercion can be used as a defence against the commission of a crime. In criminal law, coercion occurs when a person has been voluntarily deprived by an immediate threat of violence or a threat to personal liberty. A person who acts under duress may not be held accountable for the crimes he or she commits. When a person raises a forced defense, the accused admits to having committed the crime, but generally claims that his or her actions should be excused because of the coercion. Here are the two main categories of coercion: Let`s use the same example as above, except that Jill Wendy has now threatened physical violence to get a financial legacy. Since Wendy was forced to make the decision under the threat of physical violence, it would be coercion or coercion. Let`s say your company receives multiple emails that threaten that you, your colleagues, and family members would be subject to serious physical damage if you don`t sign a specific contract. If this threat forced you to sign this contract, you could probably argue that you were under duress. It is important to note that coercion is not determined by the type of pressure a person is under, but by the state of mind induced in the victim. For example, let`s say a 100-pound person threatened to hit a heavy professional boxer in the stomach if he didn`t sign a contract.
Here, the threat of physical violence in this scenario cannot reach a level of coercion, as the boxer may not actually be threatened by the smallest person. However, not all threats of breach of contract can be considered economic coercion, especially if the threat is simply legal action or a typical event in the middle course of business. A party who simply threatens to terminate the contract or promises to take legal action to force enforcement does not commit coercion. In addition, the threat must come from the other party, not from a third party or an external force. For example, war is not a valid form of economic coercion, even if a party was in physical danger. If coercion is exercised in a situation, one party will benefit, but the other party will only receive what was originally promised. A promise to do what a person was already legally obligated to do is not a consideration. Note that this does not automatically mean that coercion was applied, but the fact that only the part was enriched by the modified agreement is very suspicious. However, if both parties benefit, there is a quid pro quo, making it unlikely that coercion was a factor. The key to determining whether there was coercion is to examine how the actions affected the alleged victim`s ability to make an informed decision. It is, by its very nature, a subjective assessment.
Whether or not there was coercion for legal reasons cannot depend solely on whether a ”reasonable person” would have felt too much pressure. It depends on the facts of the case and the specific relationship between the people involved. There are other situations where it can be said that a contract was signed under duress. Of course, if a person is forced to sign a contract at gunpoint, it would be signing under duress. However, any type of threat or other cause of stress that one party imposes on another party may be considered coercion; a physical weapon is not required. When Wendy died, the other family members discovered that she had left Jill in Wendy`s will in control of her bank accounts. Another grandchild, Brent, denies that Wendy was under undue influence when she gave Jill control of her bank accounts. In this case, there would be a presumption of undue influence due to the fact that Jill lived with Wendy.
If you use coercion, you may need to prove that you have accepted the terms of the contract primarily because of a threat. Even if the other party did not intend to carry out the threat, it can be considered a constraint if it had the effect of influencing you to sign. Coercion involves using illegitimate pressure or coercion to get you to do something you wouldn`t otherwise do. If you have signed a document on behalf of your company under duress, you may be able to invalidate this Agreement. .