Question

Which of the following is involved in a situation in which a person refuses to perform according to a contract unless the other person either signs another contract with the one making the threat or pays that person a higher price than was specified in the original agreement?A. Fraudulent duressB. Conditional duressC. Negligent duressD. Economic duressE. Undue influence

Answer 1

Answer:

D. Economic duress

Explanation:

Economic duress -

It refers to the condition in the contract, where the first party threatens to cancel the deal, as the other party does not agrees to the demand of the first party, is referred to as economic duress.

The condition arises in case of any major feud between the two parties, where one of the party is left with no choice, but to follow the other party.

It is a type of forceful situation.

Hence, from the given scenario of the question,

Economic duress is showcased in the question, as one party threatens to cancel the contract, unless and until the second party agrees to all the conditions.