Business Law and Ethics

Dominic went to the car dealer to buy a car. He wanted the same car that his friend Barbara had bought the day before, which had a sticker price of Php850, 000. The salesman said he could give a discount and ordered Dominic a significantly reduced price. However, Dominic knew that Barbara had received a 20% discount, and the salesman offered him only a 10% discount. When Dominic emphasized that his friend had received a 20% discount the day before, the salesman took another 5% of the 10% discounted price. Dominic was satisfied with the new price and bought the car, thinking he had paid the same price as Barbara.

Was he right? Did they both pay the same price?

In what situations may ‘economic duress’ be sufficient to affect the contract? It is important here, as in relation to other types of duress, that the party alleging duress had no real alternative to compliance.

What are the remedies for duress? It renders a contract voidable, but does not allow the recovery of damages.

 

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