Final answer:
Despite Wendy signing the contract under threat from Captain Hook, such contracts can be deemed voidable due to duress involved in the consent process. Therefore, while a contract appears to be formed, Wendy has the option to ask a judge to void the contract due to the lack of free consent.
Step-by-step explanation:
The subject of this question is Contract Law, which falls under the broad category of Law. When Captain Hook threatens Wendy to sell her house by saying she will have to walk the plank otherwise, this constitutes duress. Duress is a situation in which a person performs an act as a result of violence, threat, or other pressure against the person. Contracts entered into under duress are not created voluntarily and, therefore, one of the essential elements of a valid contract (free consent) is missing.
To form a legally binding contract, there must be an offer, acceptance, consideration, and mutual intent to be bound. Both parties must enter into the agreement freely and voluntarily. In this case, even though Wendy signed the contract and consideration was present (the house for a reasonable market value), the consent was not free — Wendy acted out of fear for her personal safety. Consequently, the contract may be considered voidable at Wendy's discretion.
The correct answer to the question is: B Yes, but Wendy may ask a judge to void the contract if she wants. This option acknowledges that while a contract appears to have been formed, the manner in which consent was obtained (through threats from Captain Hook) allows for the contract to be declared invalid by a court if Wendy chooses to take legal action.