What typically leads to a claim of duress in a contract?

A claim of duress in a contract arises when one party exerts pressure on another, making it impossible for the pressured party to make a free and informed choice. The classic example involves the threat of physical harm or imprisonment, which creates an environment of fear or coercion. In this context, the party being threatened may feel compelled to enter into the contract against their will, as the alternatives seem intolerable.

While recent changes in personal circumstances, a lack of understanding about contract terms, and equal bargaining power may influence the dynamics of a contract, they do not inherently constitute duress. A party may face challenges that affect their decision-making capacity, but unless there is a direct threat that significantly undermines their ability to choose freely—such as the imminent threat of physical harm or imprisonment—it does not meet the legal threshold for duress. Thus, the clear connection between the threat and the compelled action is what validates a claim of duress, highlighting the importance of the specific context involving threats of harm.