[fljazzchic]

Below is a question from the Wiley Test Bank. I don’t understand the answer because I thought Duress meant threat of physical harm?

John Dash, an accountant, entered into a written contract with Kay Reese to perform certain tax services for Reese. Shortly thereafter, Reese was assessed additional taxes and she wanted to appeal the assessment. Reese was required to appeal immediately and the workpapers held by Dash were necessary to appeal. Dash refused to furnish Reese with the workpapers unless he was paid a substantially higher fee than was set forth in the contract. Reese reluctantly agreed in order to meet the filing deadline. The contract as revised is Voidable at Reese’s option based on duress.

[Anonymous]

Duress is when you are threatened with any kind of harm, so you are forced to do something to avoid this harm.

A judge says “Do as I say or I'll fine you $5,000.” That doesn't require physical harm. You'll just be out some huge money. So you comply. That's duress.

“Do as I say or you'll suffer a huge cost” – this is the case for your example. That's duress too.

Ex wife says “pay me this settlement amount or I'll take our daughter to my home country and you'll never see her again.” That's duress.

[fljazzchic]

@bobkorz – thanks for responding.

[That Cartoon Mouse]

Careful about the judge example: duress means the contract is voidable, meaning you can exit the contract if you choose. A judge says “obey the speed limit or pay $300,” you can't say that you're just not gong to go through with that contract. Either it's not a contract or it's not duress, but regardless it's a confusing example to talk about voidabilty.

Careful also duress versus extreme duress — duress is an improper threat of an economic or social nature and it makes a contract voidable — the contract happened, but you can walk away from it. Extreme duress is a threat of physical force that makes it impossible to exercise free will (gun to your head type thing) and it makes the contract void — no one can enforce it as the contract never happened.

REG 82 (10/07/11)
BEC 88 (11/01/11)
FAR 86 (11/21/11)
AUD 82 (11/30/11)
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[Author]

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