Question

What is the effect of coercion on a contract?

Answer 1

Contract coercion occurs when a contract agreement is entered into under conditions involving harm or threats of harm. State and federal laws require contracts to be entered into "knowingly" and "willingly" by all parties. Thus, if a party signs a contract due to coercion, the contract generally will not be considered legally enforceable.

If conditions of coercion are found, the effect on the contract is usually that the entire contract is rescinded or cancelled. Contract rescission has the effect of canceling the agreement in its entirety. This will release both parties from their obligation to perform any contract duties as contained in the agreement.

Answer 2

Effect of coercion on a contract

Explanation:

Coercion means forcing someone to act against their will by the use of threat or force.

As per law, a contract should be an agreement entered into by all parties involved in a knowing and willing manner. So, if coercion is involved in signing a contract, it means that one or all of the parties involved entered into the agreement against their will because they were threatened or forced. Such contract coercion is not legal. If the involvement of coercion is proved, then the contract will be nullified or cancelled. It will release the parties involved in the agreement from performing from any duties as contained in the agreement.