Ted told Bob, the owner of Bob's Travel Agency that, unless Bob bought 10,000 worth of advertising from him, Ted will circulate false stories in the community that Bob had stolen clients' deposits. No one would be willing to book tours through Bob or make down payments with him. Bob agreed to the contract only because of Ted's threats, which he believed Ted was perfectly capable of carrying out. Bob could rescind this contract with Ted based on

Question

Business

Remington

8 October, 14:00

Ted told Bob, the owner of Bob's Travel Agency that, unless Bob bought 10,000 worth of advertising from him, Ted will circulate false stories in the community that Bob had stolen clients' deposits. No one would be willing to book tours through Bob or make down payments with him. Bob agreed to the contract only because of Ted's threats, which he believed Ted was perfectly capable of carrying out. Bob could rescind this contract with Ted based on

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Answers (1)

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Elsa · Answer 1

The contract can only be rescinded on the basis of it being a duress.

Explanation:

As the options are not given with the question, they are as below

A) Unilateral mistake of fact

B) Undue influence

C) Duress

D) Bilateral mistake of fact

Out of these

The option A is not correct as it is about mistakenly misunderstanding the terms of the contract, which is clearly not the case here.

The option B is not correct as it is about the undue influence of one of the party in the positive way such that the biasness is existing to make the contract in the favor.

The option C is correct as one of the party is using threats, leading to pressure to make the second party agree to the contract.

The option D is not correct as both the parties are not misunderstanding the contract.