First Principles of Business Law

Circumstances that may invalidate a legal transaction

2. Duress

2.4. Threats to goods

 

 

 

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

A, a taxi driver, takes his taxi to B, a mechanic, for repair. B says the repairs will cost $400. But when the repairs are done and A goes to collect the car, B says that the work took longer than expected and he demands that A pay $750. Otherwise, B says, he will sell A's car in order to recover this amount. A needs the car urgently and and reluctantly agrees to pay B $750.

Can A have the agreement to pay $750 to B set aside on grounds of duress?

(a) Yes. B is threatening to deal with A's car in a way that he has no legal right to do. This is sufficient to vitiate A's agreement to pay $750.

(b) No. B is only saying that he will sell the car in order to recover the costs of the repair. This is not a threat that vitiates A's agreement to pay $750.

 

 

 

 

 

 

 

 

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