Martin Nowak,an accountant,entered into a written contract with Jane Gibson to perform certain tax services for Jane.Shortly thereafter,Jane was assessed additional taxes and she wanted to appeal the assessment.Jane was required to appeal immediately and the workpapers held by Martin were necessary to appeal.Martin refused to furnish Jane with the workpapers unless he was paid a substantially higher fee than was set forth in the contract.Jane reluctantly agreed in order to meet the filing deadline.The contract as revised is:
A)voidable at Jane's option based on undue influence.
B)voidable at Jane's option based on duress.
C)void on the ground of undue influence.
D)void on the ground of duress.

Question

Quizplus · Accepted Answer

Economic duress is a situation in which one person induces the formation or modification of a contract by threatening another person's economic interests.A common coercive strategy is to threaten to breach the contract unless the other party agrees to modify its terms.Here,Martin is clearly imposing an economic duress on Jane,and hence,she can rescind the contract.

Martin Nowak,an Accountant,entered into a Written Contract with Jane Gibson