Gary signs a purchase agreement to buy a vacant lot in Beaufort, South Carolina, after the seller threatens to report Gary's undisclosed criminal history to his employer unless Gary buys the property. Gary later seeks to rescind the contract. Which doctrine would best support Gary's claim under South Carolina law?
Correct Answer
B) Duress, because Gary's consent was obtained through an improper threat
Under South Carolina contract law, duress occurs when one party uses an improper threat to induce another party to enter a contract, overcoming the victim's free will. Threatening to expose damaging personal information unless a party signs a contract is a classic form of economic or personal duress. A contract entered into under duress is voidable at the victim's option. Gary's consent was not freely given — it was coerced — which undermines the mutual assent element and gives Gary grounds to rescind the agreement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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.
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