When one of the parties offers a disproportionately small amount of money in settlement of a debt and refuses to pay more,it is a form of economic duress.

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Economic duress involves the formation or modification of a contract by threatening another person's economic interests.A common situation involves one of the parties offering a disproportionately small amount of money in settlement of a debt and refusing to pay more.

When One of the Parties Offers a Disproportionately Small Amount