Analysis of Contract Rescission and Voidability- A Hypothetical Business Scenario

Analysis of Contract Rescission and Voidability- A Hypothetical Business Scenario

For parties to enter into a contract, some specifications must be fulfilled for the agreement to be legal and binding. All parties should be of legal age that is usually 18 years and above, be of the mental capacity to make informed decisions exhibiting rational cognitive abilities, and be of a sober mind free from the intoxication of any drugs or substance that alters conventional body functions.

Becky went to the business negotiation drunk, and that made her incompetent to enter into any meaningful and binding agreement on the contract. Ed should have rescheduled the meeting to a later time when both of them are in their proper state of mind. Therefore, Becky reserves all the rights to dispute the contract on account that she was not sober, and she might have been persuaded into the contract an action that would have been contrary to her actions if she was sober-minded. Moreover, Ed used duress or undue pressure to illegitimately extort Becky into the contractual agreement by bringing a third party who stood at the door as a form of intimidation. Also, Ed practiced duress by threatening Becky to sign a new contract or face legal action in a court, which Becky signed unknowingly since she was intimidated and afterward sought legal counsel.

Duress as a form of pressure to a person that may be direct, indirect, or economical is a method of one party gaining an unfair advantage in an agreement. Coercion in obtaining favor in a contract is considered illegal, and in this case, Becky can revoke the agreement with regard to business law from given proof of information aforementioned.

References

Barbulescu, O. (2015). The utility of the rescission clause in the settlement of disputes arising from international trade contracts. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 373.

MacQueen, H. (2019). Restitution upon Rescission for Breach of Contract, Mutuality, and Unjustified Enrichment: Lyle v Webster. Edinburgh Law Review, 278-283.

Terman, J. N., & Feiock, R. C. (2016). The effect of formal and informal contracting mechanisms on implementation performance in the US federalist system. Local Government Studies, 309-331.

Yang, H., & Liu, J. (2017). Study the period of exercising the right of contract for rescission. Journal of Huainan Normal University.

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In this unit, we have been examining under what grounds a contract may be rescinded or declared void and voidable.

This assignment asks you to review a hypothetical business situation and conduct an analysis.