[Cheap Motorcycle] Jack, an unpleasant, disagreeable, business law teacher, notices that a student, Liam, who is past the age of majority, has a nice motorcycle for sale. Liam has struggled through school, is in his last semester, and needs to pass business law in order to graduate. Jack tells Liam that he would like to see Liam pass and, in the next sentence, says that he wants to buy the motorcycle for $100, a price far below the value of the motorcycle. Liam asks if Jack is serious about the price, and Jack replies, "I have the power here! Take it or leave it!" Jack proceeds to draw up a contract for the sale of the motorcycle for $100 which Liam signs. Liam does some research and finds that Jack has had several arrests for driving under the influence in a nearby town. As an act of revenge, Liam tells Jack that unless Jack sells Liam his new Mustang convertible for $50, he will send a letter about the arrests to the school newspaper. Jack reluctantly agrees to the deal.
-Liam could seek to rescind the contract for the sale of the motorcycle under the theory of ________.
A) fraud.
B) duress.
C) undue influence.
D) fraud or undue influence but not duress.
E) Liam may not rescind the contract.
Correct Answer:
Verified
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