Contracts I

Restatement Second of Contracts § 176

Restatement Second of Contracts § 176

When a Threat Is Improper

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1. A threat is improper if
   1. what is threatened is a crime or a tort, or the threat itself would be a crime or a tort if it resulted in obtaining property,
   2. what is threatened is a criminal prosecution,
   3. what is threatened is the use of civil process and the threat is made in bad faith, or
   4. the threat is a breach of the duty of good faith and fair dealing under a contract with the recipient.
2. A threat is improper if the resulting exchange is not on fair terms, and
   1. the threatened act would harm the recipient and would not significantly benefit the party making the threat,
   2. the effectiveness of the threat in inducing the manifestation of assent is significantly increased by prior unfair dealing by the party making the threat, or
   3. what is threatened is otherwise a use of power for illegitimate ends.