Duress

Question 1

The contract may be avoided on grounds of economic duress if there is:

Answer 1

A wrongful or improper threat,
A lack of reasonable alternatives, and
Actual inducement of the contract by threat.

Question 2

If a party’s ________ __ _________ is induced by an improper threat by the other party that leaves the victim no reasonable alternative, the contract is voidable by the victim.

Answer 2

manifestation of assent

Question 3

If a party’s manifestation of assent is induced by one who is not a party to the transaction, the contract is ________ by the victim unless the other party to the transaction in good faith and without reason to know of the duress either gives value or relies materially on the transaction.

Answer 3

voidable

Question 4

what is threatened is a crime or a tort, or the threat itself would be a crime or a tort if it resulted in obtaining property,
what is threatened is a criminal prosecution,
what is threatened is the use of civil process and the threat is made in bad faith, or
the threat is a breach of the duty of good faith and fair dealing under a contract with the recipient.

Answer 4

A threat is improper if

Question 5

A ________ __ ________ if the resulting exchange is not on fair terms, and
the threatened act would harm the recipient and would not significantly benefit the party making the threat,
the effectiveness of the threat in inducing the manifestation of assent is significantly increased by prior unfair dealing by the party making the threat, or
what is threatened is otherwise a use of power for illegitimate ends.

Answer 5

threat is improper

Question 6

A threat by an attorney to institute _________ _________ in order to aid a client in a civil dispute may not only render any resulting agreement unenforceable because of duress but may also subject the attorney to discipline because of professional misconduct.

Answer 6

criminal proceedings

Question 7

If conduct that appears to be a __________ __ _______ by a party who does not intend to engage in that conduct is physically compelled by duress, the conduct is not effective as a manifestation of assent.

Answer 7

manifestation of assent

Question 8

________ ________ is unfair persuasion of a party who is under the domination of the person exercising the persuasion or who by virtue of the relation between them is justified in assuming that that person will not act in a manner inconsistent with his welfare.

Answer 8

Undue influence

Question 9

If a party’s manifestation of assent is induced by undue influence by the other party, the contract is ________ by the victim.

Answer 9

voidable

Question 10

If a party’s manifestation of assent is induced by one who is not a party to the transaction, the contract is voidable by the victim unless the other party to the transaction ____________ and without reason to know of the undue influence either gives value or relies materially on the transaction.

Answer 10

in good faith