Blackhawk Corporation contracted to sell Greeneye Corporation some materials that Greeneye needed to fulfill a contract it had with a third party. Knowing that Greeneye was in desperate need of the materials, Blackhawk called Greeneye the day before delivery was due and threatened to withhold delivery unless Greeneye agreed to pay a higher price. Greeneye could not get the materials elsewhere and would suffer a huge financial loss without them, so it agreed to pay the higher price. Greeneye later asserts that its promise to pay the higher price is unenforceable because it was the product of duress. Which of the following statements is true of this situation?
A) Blackhawk only exercised superior bargaining powers and therefore is not at fault.
B) Under modern contract law, Blackhawk's threat to cause Greeneye economic harm could be considered duress and the contract may be considered voidable.
C) Blackhawk's threat could not be considered duress because they had a legal right to seek a higher price for its goods.
D) Under modern contract law, Blackhawk's threat to cause Greeneye economic harm may be unintentional tort, but not duress.
Correct Answer:
Verified
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