Posted: June 14th, 2022

Ground to rescind a contract.

Consider the following hypothetical: Ed contracted with Becky to build a house. Immediately prior to that meeting, Becky was so nervous that she drank an entire bottle of champagne and she does not remember all of the details of the meeting. Shortly before the closing, Ed met with Becky, accused her of fraud and threated to prevent the contract from going to closing. Ed’s associate, a former stunt double for Dwayne “the Rock” Johnson, stood outside the door for two hours to prevent Becky from leaving. Ed gave Becky the choice of signing a new contract promising him more money for the build or going to court. Becky signed the agreement but now has sought legal advice.

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Imagine that you are Becky’s attorney. What would you tell her about whether she can rescind the contract? (Big Hint: Capacity to Contract, Duress and Undue Influence)

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