Paralegal Advanced Competency Exam (PACE) Practice Exam

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Why are contracts signed under duress considered voidable?

  1. They are not recognized by legal standards

  2. They are signed without proper review

  3. They lack mutual agreement

  4. They are signed under pressure, negating free will

The correct answer is: They are signed under pressure, negating free will

Contracts signed under duress are considered voidable primarily because they are executed under pressure that compromises the parties' free will. Duress involves coercion or threats that leave one party with no reasonable alternative but to agree to the contract. This lack of voluntary consent undermines the fundamental principle of contract law, which is based on the mutual agreement and voluntary consent of the parties involved. Since one party was compelled to sign the contract under duress, they retain the right to void the contract, thus rendering it unenforceable against them. This ability to void the contract recognizes the imbalance created by the duress and protects the coerced party's rights.

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