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Philosophy

Defenses to Contract Formation: Misrepresentation and Duress

Quick fact

In many legal systems, a contract signed under duress or induced by a fraudulent statement is not automatically void but is 'voidable,' giving the innocent party the option to either affirm or cancel the contract.

Why this is interesting

You sign a contract for a used car that the seller swore had only 30,000 miles on the odometer, but later you discover it actually has 130,000. Can you get out of the deal? Similarly, what if someone signs a contract because they were physically threatened? These situations reveal that a contract is not always binding simply because it was signed.