How can a contract entered under duress be characterized?

Study for the PEO PPE Exam. Use multiple choice questions with hints and explanations. Prepare thoroughly for your exam!

A contract entered into under duress can be characterized as voidable. Duress involves the application of pressure or threats that coerce a party into entering into a contract against their will. When a contract is formed under such circumstances, it undermines the voluntary consent that is essential for a valid contract.

As a result, the party who was subjected to duress has the legal right to void the contract, meaning they can choose to invalidate it and be relieved from any obligations or liabilities imposed by it. This ensures that individuals are protected from being forced into agreements without their genuine consent. The option of voiding a contract reflects the idea that while the agreement may exist formally, it lacks the essential element of free will necessary for enforceability.

Moreover, contracts formed under duress do not fall under the category of being fully valid or enforceable, nor are they considered partially enforceable or requiring mediation, as these options do not adequately address the nature of consent in such situations.

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