Economic Duress

Economic duress occurs when one party uses financial pressure or threats to force another party into a contract or agreement against their will. This can happen, for example, when someone is threatened with significant financial harm unless they sign a contract. In legal terms, a contract signed under economic duress may be considered invalid because it lacks genuine consent. Essentially, it highlights the idea that agreements should be made freely, without coercion or undue pressure that compromises a person's ability to make an informed and voluntary decision.