In: Accounting
Sam is told by his employer that if he does not sign the new employment contract with the company at lower wages, she will have him arrested for stealing items from the company. Sam signs. Is the contract enforceable?
Contract : is an legally enforceable agreement between two parties which is agreed by both of them without any undue influence, foregry, misrepresentation, coercion etc. If any contract is made using these unlawful means then such contact stands void and is not enforceable. There should also be free concent of bpth the parties to contact. There can be spoken or written agreement.
The term here should be explained is Coercion because in the given case coercion is used to make the contract.
Coercion : any harm or threat of harm is done to make any party agreeable to sign the contract is called contract due to coercion. And if any party signs any contract due to coercion the such contact is not legally enforceable and stands void.
In the given case Sam is told by his employer that if he does not sign the new employment contract with the company at lower wages, she will have him arrested for stealing items from the company.
And now Sam signs the contract.
This contact shall stand unenforceable because free concent of Sam was not their in such contract and coercion was used on Sam to agree on such contract and the law clearly states that any contract made using coercion is not enforceable.
The coercion in this case is that Sam was forced to sign the new contract on lower wages otherwise his employer may get him arrested for stealing items from the company.
So, therefore the contract is not enforceable in this case.