Question
Bully Corporation contracted to sell Wimp Corporation materials that Wimp needed to fulfill a contract it had with a third party. Knowing that Wimp was
Bully Corporation contracted to sell Wimp Corporation materials that Wimp needed to fulfill a contract it had with a third party. Knowing that Wimp was in desperate need of the materials, Bully called Wimp the day before delivery was due and threatened to withhold delivery unless Wimp agreed to pay a higher price. Because Wimp could not get the materials elsewhere and would suffer a huge financial loss without them, it agreed to pay the higher price. Wimp later asserts that its promise to pay the higher price is unenforceable because it was the product of duress. Which of the following is a true statement with regards to this situation?
Select one:
a. If the court agrees that Wimp's promise to pay the higher price was the product of undue influence, the contract will be ruled to be void
b. Under modern contract law, Bully's threat to cause Wimp economic harm could be considered duress and the contract may be considered to be voidable
c. Bully's threat could not be considered duress because Bully had a legal right to seek a higher price for its goods
d. Under modern contract law, Bully's threat to cause Wimp economic harm may be undue influence but not fraud
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