Also known as: improper threats · duress threat
Written by attorneys · grounded in primary & secondary sources — see below
A statement by one party that communicates an intention to cause harm or loss to the other. Such a threat renders the resulting contract voidable by the victim when it induces the victim's manifestation of assent and leaves the victim with no reasonable alternative.
Ines Ibarra, a junior associate, missed a filing deadline after partners assigned her an unmanageable caseload. The partners told her she must sign a clawback and non-disparagement agreement accepting full responsibility or they would file a bar complaint alleging dishonesty. Fearing suspension and reputational ruin with no time to consult counsel or seek other employment, Ines signed the agreement.
Ibrahim Iqbal fell behind on mortgage payments to Infinity Bank, with foreclosure scheduled in ten days. The bank officer demanded he sign a deed in lieu of foreclosure transferring the property at a below-market price or face immediate public disclosure of the foreclosure to his employer. With no time to locate another buyer or cure the default, Ibrahim signed the deed.
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An improper threat leaves the victim with no reasonable alternative and produces an exchange that is not on fair terms. The threatened act must harm the recipient without significantly benefiting the threatening party. Ordinary commercial pressure does not meet this standard when the threatened action serves a legitimate interest and the resulting terms reflect market realities.
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Physical compulsion under section 174 renders conduct ineffective as a manifestation of assent so that no contract forms at all. An improper threat under section 175 induces assent that is otherwise effective but makes the contract merely voidable at the victim's election.
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Yes. A threat may be improper even if the threatened act is not itself a crime or tort when the resulting exchange is unfair and the threat causes harm without significant benefit to the threatening party or exploits the victim's vulnerability for illegitimate ends.
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Ratification may occur through acceptance of benefits, remaining silent after an opportunity to disavow, or rendering performance. The victim must have a genuine opportunity to disavow once the duress ends. Continued performance under ongoing pressure does not constitute ratification.
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