First Principles of Business Law

2. Duress

2.2. Threats of physical harm

Read the facts and the question and then choose the best answer.

A says to B: "I want to buy your racehorse. I'll pay you $50,000 for him."

B replies: "That's a reasonable price, but I don't want to sell."

A says to B: "If you don't agree to sell, your wife will end up in hospital."

B replies: "No, don't do anything violent: I'll sell you the horse for $50,000."

Can B have the the contract to sell the horse set aside on grounds of duress?

(a) Yes, because A gained B's consent to the contract by threats of physical violence to B's wife.

(b) No, because A did not threaten B himself with any physical harm.