Law for Business 10th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 10

Saret-Cook, a married woman and paralegal, had an affair with a married partner at the law firm where she worked and became pregnant. When the partner broke off the affair, she engaged in a campaign of harassment against him, his family, and other employees. After she threatened to sue the firm, it negotiated a settlement which called for her to resign in five months, gave her salary and benefits after the resignation, required her to sign a release, and provided for attorney fees. Saret-Cook later argued that, because she had been on Demerol at the time, she lacked capacity, and therefore the agreement was not enforceable. Can she avoid the contract? Explain.