Can a contract be void due to duress and breach of obligations?

Full question:

Would the following circumstances be legal reason enough to consider a contract void?1. Company 'A' was forced to agree to the terms of the contract under duress. ( a contract we were extorted into giving up our promised discount AND where we agreed to pay them 1% per day if our payment was late which was ridiculous) That duress being: A) Company 'B' International was holding critical pieces to hundreds of sets that already been paid for by Company 'A'. They shipped the items in a way which witheld 1 piece from every set and placed those pieces in the last containers to arrive so that we could not cancel any part of the order since they were already 2 months late with delivery and we had asked for a refund, which was refused. This was a breach of initial our agreement in the first place as Company 'B' promised to only deliver complete sets. B) Company 'A' was already responsible for paying the demurrage of 35,000 whether or not Company 'B' released the goods and that amount was climbing by more than 1300.00 per day. C) The entire situation is based on 4 previous failed contracts wherein Company 'B' failed to deliver the goods on time resulting in massive financial damage to Company 'A'. Company 'B' then failed to give Company 'A' the discount they had promised in previous contracts and the arguing cost Company 'A' nearly 80,000. (2. Company 'B' failed their obligations of the contract by refusing to release the goods as promised on September 10th. A) Instead of releasing as promised, Company 'B' tried to extort Company 'A' into paying 20-30 thousand more than owed during the interim. B) Company 'B' lied several times about releasing the good, then stated they were not releasing the goods unless Company 'A' paid more money than agreed.C) The goods were not released until Company 'A' contacted Company 'B''s bank and sent them copies of all contracts and emails showing Company 'B''s intentions not to release the goods.3.The goods according to the original contract have still not been delivered. Only 1/2 of the items were made as requested. A) The sets were not made as ordered and in some cases are defective.B) The items were sent in non ordered and non matching colors so the items could not be solds as sets as was intended.C) There are missing components to the sets.Company 'A' entered into the contract in good faith, however, unfortunately Company 'B' did not and they further damaged their trustability with us. The promise of future business was diminished with the ongoing attempts at extortion for more money, this after causing Company 'A' to lose $100,000 in business.

• Category: Contracts
• Subcategory: Recission
• Date: 04/07/2025
• State: Nevada

Answer:

The determination of whether a contract is void due to duress is subjective and depends on the specific facts and circumstances. Duress involves forcing someone to consent to a contract against their will. It must significantly impair a party's free will, making them act in a way they wouldn't otherwise choose. The coercive act must be severe enough to overwhelm a person of ordinary firmness. Courts assess duress based on the individual's characteristics and whether they had reasonable alternatives available.

In legal terms, 'duress of goods' refers to unlawfully withholding property until demands are met, which aligns with the concept of economic duress. Key elements of economic duress include:

• Wrongful or improper threat: This is judged based on the facts of each case and may involve morally wrong or criminal conduct.
• Lack of reasonable alternative: If a legal remedy or market substitute is available, this element is not satisfied.
• Threat as the cause of entering the contract: This is assessed subjectively, considering the victim's background and the relationship between the parties.
• Financial distress caused by the other party: Generally, the other party must have caused the distress.

In your case, if Company 'A' can demonstrate that Company 'B' used duress to force the contract, it may be deemed void. Additionally, Company 'B's failure to fulfill its obligations, such as timely delivery and proper quality of goods, may further support claims of breach of contract.