Invalidating factors of a contract intimidating letter

duress, or coercion, will invalidate a contract when someone was threatened into making the agreement.In an often cited case involving duress, a shipper (Company A) agreed to transport a certain amount of Company B's materials, which would be used in a major development project.If fraud or misrepresentation occurred during the negotiation process, any resulting contract will probably be held unenforceable.

invalidating factors of a contract-81

Since a contract is a legally binding agreement, in the typical scenario, once you enter into a contract with another person or business, you and the other party are both expected to fulfill the terms of the contract.

But it's possible for an otherwise valid contract to be found unenforceable in the eyes of the law, and this article looks at some common situations where that might be the case.

It's expected that both (or all) parties to a contract have the ability to understand exactly what it is they are agreeing to.

If it appears that one side did not have this reasoning capacity, the contract may be held unenforceable against that person.

The court ultimately found that this agreement to raise the price was not enforceable, because it came about through duress. If Person B forced Person A to enter into an agreement by taking advantage of a special or particularly persuasive relationship that Person B had with Person A, the resulting contract might be found unenforceable on grounds of undue influence.

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