Velma has long coveted Joshua\'s Picasso. When Velma hears that Joshua is in dir

Question

Velma has long coveted Joshua's Picasso. When Velma hears that Joshua is in dire financial straits (which situation is not Velma's fault), she offers him $5000 for the painting. Although the painting is worth many times that, Joshua is desperate for cash and accepts her offer. Sometime thereafter, when Joshua is back on his feet financially, he seeks to rescind the contract and recover the painting on the grounds of economic duress: Joshua will probably win. Joshua will lose. Joshua will win only if he can prove that Velma knew the true value of the painting. Joshua will win because of mutual mistake as to value.

Explanation / Answer

Joshua will lose because economic duress holds only when there is reasonable option (but to accept other party's terms). However, if there is available legal remedy or available market substitute (example: funds, goods, services) /other sources of funds, economic duress does not hold. In this case, Joshua had the option to go to the bank.

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