What is defined as intimidation used to enter a contract?

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

The term that is defined as intimidation used to enter a contract is duress. Duress involves one party using threats or coercive tactics to force another party into a contractual agreement against their will. This can include physical threats, psychological coercion, or other forms of pressure that undermine the ability of the victim to make a free and informed decision.

Understanding duress is crucial as contracts formed under such conditions may be deemed voidable. The victim of duress has the right to rescind the contract due to the absence of genuine consent, as the affected party did not enter the agreement freely.

The other terms mentioned do not align with the concept of intimidation in the context of contract formation. Exemption refers to the freedom from an obligation or liability; undue influence involves taking advantage of a position of power over another party, but not necessarily through intimidation; and frustration relates to the inability to fulfill a contract due to unforeseen circumstances, rather than coercive pressure to enter into a contract.

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