In a situation involving duress, what is the status of the contract?

Study for the 75 Hour Broker Pre Licensing Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

In situations involving duress, the status of the contract is that it is considered valid but may be challenged. Duress occurs when one party is forced into a contract against their will, often through threats or coercion. While the contract is not void from the outset, the party who was coerced has the legal right to contest the validity of the contract in court or seek its cancellation.

This outcome reflects the idea that contracts should be entered into voluntarily and with informed consent. Therefore, although the contract exists and may be enforced initially, the affected party has recourse to challenge it based on the circumstances of the duress. This allows the judicial system to evaluate the context and determine whether the elements of consent and pressure meet the legal standards for duress.

Other choices suggest either an absolute voiding of the contract or complete enforceability, which do not take into account the nuances of how duress impacts the validity and enforceability of agreements.

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