Case:You are a small company that have a major contract withAdidas for selling them football shoes. The agreement has a term of two years. The priceAdidas has to pay you is 20 euros perpairof shoes.Adidas owes you a big amount of money in unpaid invoices and you have requested them to pay these invoices several times. One day, you receive a call fromAdidadFinancialDirectorsaying:Weknowyouoweyou1milliondollars,but,unless you agree to reduce that amount to Eur800,000 we will terminate the contract.You finally accept the blackmail ofAdidas director. Once the agreement has expired, after two years, Adidas said to you that unless the price of the shoes is reduced to 18 euros, they will not enter into a new agreement with your company.

Questions:

1. Can youavoidthatsettlementagreement byvirtueofwhichyouacceptednottoreceive 1 million? What would be your arguments in court?

1. Once theagreementexpired,canAdidas"threaten"youwithnotenteringintoanew agreement if you don't reduce the price of the shoes?