A real estate contract signed under duress is considered:
Correct Answer
B) Voidable at the option of the party who was subjected to duress
A contract signed under duress is voidable, not void. The party who was coerced has the option to either rescind (void) the contract or ratify it and allow it to remain in force. Unlike an illegal contract — which is void from the beginning — a contract signed under duress is valid on its face until the injured party takes action to rescind it. The coerced party must act within a reasonable time to avoid the contract.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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