LAW 505-002 – Contracts I
Restatement Second of Contracts § 176
When a Threat Is Improper
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- A threat is improper if
- 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,
- what is threatened is a criminal prosecution,
- what is threatened is the use of civil process and the threat is made in bad faith, or
- the threat is a breach of the duty of good faith and fair dealing under a contract with the recipient.
- A threat is improper if the resulting exchange is not on fair terms, and
- the threatened act would harm the recipient and would not significantly benefit the party making the threat,
- 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
- what is threatened is otherwise a use of power for illegitimate ends.