Question

Where it forces a businessperson to do something that harms the business, even the threat of violence or some other illegal activity can constitute a tort. This tort is known as:________

Answer 1

Economic duress occurs when a businessperson is coerced into harming their business through illegal threats or activity, making any resulting agreement possibly voidable.

Step-by-step explanation:

When a businessperson is forced to engage in an activity that harms their business, even if the coercion involves the threat of violence or other illegal conduct, the tort in question is known as economic duress or coercion. This legal concept acknowledges that actions that directly threaten business operations or financial health, through illegal or improper threats, can significantly impact a businessperson's ability to make free economic choices. Economic duress can lead to contracts or agreements made under pressure, which may be considered voidable by courts since such agreements are not made with true consent.

Additionally, this concept is crucial in maintaining the integrity of commercial transactions and ensuring that businesses operate within a framework of lawful and voluntary exchanges. When the legality of a contract is in question due to economic duress, the harmed party may seek legal recourse. This ensures adherence to lawful conduct and deters entities from exerting undue influence to gain unfair advantages.