Asked by Jennifer Esparza on May 29, 2024
Verified
When one of the parties offers a disproportionately small amount of money in settlement of a debt and refuses to pay more,it is a form of economic duress.
Economic Duress
A situation where a person or entity is forced to enter into an agreement or transaction due to financial pressure or threats.
Disproportionately Small
Referring to an amount or share that is significantly less than what is considered fair or equal in comparison to others.
- Comprehend the standards for economic pressure in altering contracts.
Verified Answer
LP
Lorena PedrozaMay 30, 2024
Final Answer :
True
Explanation :
Economic duress involves the formation or modification of a contract by threatening another person's economic interests.A common situation involves one of the parties offering a disproportionately small amount of money in settlement of a debt and refusing to pay more.
Learning Objectives
- Comprehend the standards for economic pressure in altering contracts.