Velma has long coveted Joshua's Picasso. When Velma hears that Joshua is in dire financial straits (which situation is not Velma's fault), she offers him $5000 for the painting. Although the painting is worth many times that, Joshua is desperate for cash and accepts her offer. Sometime thereafter, when Joshua is back on his feet financially, he seeks to rescind the contract and recover the painting on the grounds of economic duress: Joshua will probably win. Joshua will lose. Joshua will win only if he can prove that Velma knew the true value of the painting. Joshua will win because of mutual mistake as to value.
Joshua will win only if he can prove that Velma knew the true value of the painting.
Duress makes a contract voidable. Economic duress refers to the use of unlawful economic pressure to force the other party to agree to unreasonable demands. In this case Joshua can rescind the contract provided he can prove that Velma was aware of the true value of the asset.
Velma has long coveted Joshua's Picasso. When Velma hears that Joshua is in dire financial straits...