If coercion and duress are applied to a contract, what is the status of that contract?

When coercion and duress are present in a contract, the contract is classified as voidable at the option of the coerced party. This means that the individual who was subjected to coercion or duress has the right to choose whether to affirm or void the contract. The rationale behind this is that a contract requires the voluntary consent of all parties involved; if one party was compelled to enter the contract against their will, the essential element of free will is compromised.

This principle acknowledges that, in situations involving coercion or duress, the coerced party did not genuinely agree to the terms, as their consent was not free and informed. Consequently, they have the option to invalidate the agreement based on the undue pressure exerted upon them, thus retaining their right to rectify the situation.

Understanding this concept helps in recognizing the legal protections provided to individuals against unfair practices in contractual agreements.