A contract created under duress is considered what?

Prepare for the Louisiana Surplus Lines Exam. Test your knowledge with multiple-choice questions and detailed explanations. Enhance your understanding and increase your chances of passing the exam!

A contract created under duress is considered voidable at the option of the party under duress because it signifies that one party was forced into the agreement under coercion or pressure, which compromises the voluntary nature of contract formation. In contract law, duress generally involves threats or actual harm that influence a party’s decision-making process, nullifying the genuine consent necessary for a binding agreement.

Since the affected party did not genuinely agree to the terms due to the circumstances, they have the right to choose to void the contract, but it remains valid until they decide to exercise that choice. This means the contract can still be enforced against the party who exerted duress until the victim of the duress opts to void it. This principle protects individuals from being unjustly bound by agreements made under extreme pressure, ensuring that contracts are entered into fairly and with mutual consent.

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