Ben and Kate had been negotiating Ben's employment contract in conversations over the phone for a couple of weeks. Finally, they agreed on some contract terms. Kate offered to create a draft of the contract for Ben to read over. On the same day Ben was fired from his job. Afraid he would be unemployed, Ben signed Kate's draft without reading it. In this example Ben:

A) can avoid the contract because of mistake by failure to read.

B) can avoid the contract because he was the victim of economic duress.

C) cannot avoid the contract because of economic duress or failure to read.

D) may rescind the contract because of unilateral mistake

Question

Business

Travis Hebert

18 August, 14:50

Ben and Kate had been negotiating Ben's employment contract in conversations over the phone for a couple of weeks. Finally, they agreed on some contract terms. Kate offered to create a draft of the contract for Ben to read over. On the same day Ben was fired from his job. Afraid he would be unemployed, Ben signed Kate's draft without reading it. In this example Ben:

A) can avoid the contract because of mistake by failure to read.

B) can avoid the contract because he was the victim of economic duress.

C) cannot avoid the contract because of economic duress or failure to read.

D) may rescind the contract because of unilateral mistake

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Answers (1)

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Athena Schneider · Answer 1

Answer: C. cannot avoid the contract because of economic duress or failure to read.

Explanation: Economic duress in contract happens when one of the party threatens to pull out or cancel a contract if the other party do not agree to his demand. It occurs when the other party is left without any other option and his stuck, but had to agree to the new terms of the contract.

In this case Ben signed the contract without reading it because he was sack for his current job, putting him in a tight situation.