Contract Agreements Under Duress

A business needs legally viable contracts in order to work with potential partners and customers. Contracts are necessary to any business operation, as a company cannot otherwise establish legally recognized agreements with clients or establish partnering relationships with service providers. However, some of these contracts may not be created on legally acceptable grounds. In particular, the law does not allow contracts to be created under duress.

If you are considering agreeing to a business contract, you need an attorney to make sure that you receive fair treatment. For more information regarding your legal options and rights when signing a contract, contact the Austin contract lawyers of Slater, Kennon & Pugh Ltd.LLP by calling 512-472-2431 today.

Invalid Contracts

A business or group may attempt to push a contract benefitting them by means that are considered illegal under United States business law. Specifically, the use of coercion or duress is not permissible. Forcing a person to sign a contract automatically invalidates the terms of that contract, allowing the coerced party to break the agreement.

Duress can include the following actions:

  • Removing any practical alternative to the contract
  • Physically threatening a person to sign a contract
  • Causing financial troubles for the company if they do not sign
  • Threatening criminal action against the company unless the contract is signed

If a contract is signed under duress, the coerced individual or company can legally challenge that agreement in order to break it.

Contact Us

If you need legal assistance handling a contract that may have been produced or signed under duress, we may be able to help. To learn more about your options, contact the Austin contract attorneys of Slater, Kennon & Pugh Ltd.LLP today at 512-472-2431.



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Click here to read David Slater's article "Drafting Effective Employee Handbooks" in Executive Legal Advisor.