BBG E231 Lecture Notes - Lecture 18: Scienter
Document Summary
Voidable= it can be a contract or it can be voided. 5 (main) defenses to a contract: duress= any wrongful or unlawful act, or threat, that overcomes the free-will of a party . Two types: physical threat: ex: threat of physical force. If u don"t do ___, i"ll shoot u if u don"t agree to sign x contract, i"ll kill __. If u do this (threat of physical force) the contract is now void. Coercion with a gun makes the contract void (there"s no more contract). Means physical force or threat of physical force: improper threats: ex: i"ll post on fb that u slept with ur best friend"s boyfriend if u don"t do this. Or economic coercion, if u don"t do this, then i will fire u. this is voidable because it"s not as bad as being beaten to death. If it"s not a threat of physical force than it"s in this category.
