Existing literature on the contract law doctrine of duress identifies a number of tests to determine conditions under which a contract can be voided. No article provides a specific and formal economic analysis on the link between rent-seeking and the conditions under which allowing a defense of...

The doctrine of duress allows a party to a contract to avoid its contractual obligations when it was induced to enter that contract by a wrongful threat while in a dire position that leaves it no choice but to enter the contract. Although threats of criminal or tortious conduct clearly are...