Question

A fundamental principle of contract law is that parties can enter into an agreement with whomever they wish to contract with—in other words, the court will not intervene. Which of the following would be an exception to this principle?

Select one:

a. If one of the parties is a limited liability company

b. If the contract value is for less than $50.00

c. If one of the parties can prove duress

d. If both parties failed to obtain independent legal advice

Answer 1

Duress is a situation where a person performs an act as a result of violence and threat and other pressure by another person so these are unlawful threat or coercion.

If one of the parties can prove duress, the court will intervene even if it was an agreement but it was an agreement in which one of the parties has proved the duress.

other statement are false because the court will not intervene if party is limited liability company or both party failed to obtain independent legal advice or the contract value is less than 50.

Correct answer will be option ( C) if one of the parties can prove duress.