Randal embezzled $6,000 of his employer's money and then disappeared. The employer's accountant called at Randal's residence and found out that his wife had a $3,500 term deposit. When the accountant threatened to have her husband arrested and imprisoned if she did not agree, she assigned the term deposit to the employer to help to defray the loss from the embezzlement. If the wife were later to sue for return of the term deposit, what would be her ground for avoiding the assignment?

Question

Quizplus · Accepted Answer

The wife's assignment of the term deposit was made under duress, which is a wrongful threat that leaves the victim with no reasonable alternative but to comply with the demand. The threat of having her husband arrested and imprisoned was wrongful and left her with no reasonable alternative but to assign the term deposit. Therefore, the assignment can be avoided on the ground of duress.

Randal Embezzled $6,000 of His Employer's Money and Then Disappeared