First Principles of Business Law
Circumstances that may invalidate a legal transaction

2. Duress

2.3. Threats of economic harm

 

 

 

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

A, a landlord, says to B: "I want to add 20 square feet to the floorspace of your shop and increase your rental by $500 per month."

B, a tenant, replies: "I don't need extra space and my lease still has six months to go at the present rate."

A says to B: "If you don't agree to the increase, I'll find some excuse to terminate your lease immediately."

B replies: "Well, relocating will cost me a lot of money, so I'll pay the extra."

Can B's agreement to pay extra rent be set aside on grounds of duress?

(a) Yes. Even a threat of purely economic or financial harm is sufficient to establish duress.

(b) No. A threat of purely economic or financial harm is not sufficient to establish duress.

 

 

 

 

 

 

 
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