LAW 505-002 – Contracts I

Restatement Second of Contracts § 175


When Duress by Threat Makes a Contract Voidable

View on LexisNexis

  1. If a party's manifestation of assent is induced by an improper threat by the other party that leaves the victim no reasonable alternative, the contract is voidable by the victim.
  2. If a party's manifestation of assent is induced by one who is not a party to the transaction, the contract is voidable by the victim unless the other party to the transaction in good faith and without reason to know of the duress either gives value or relies materially on the transaction.