Question: Maco, Inc. and Kent contracted for Kent to provide Maco certain consulting services at an hourly rate of $20. Kents normal hourly rate was $90

Maco, Inc. and Kent contracted for Kent to provide Maco certain consulting services at an hourly rate of $20.

Kent’s normal hourly rate was $90 per hour, the fair market value of the services. Kent agreed to the $20 rate because Kent was having serious financial problems. At the time the agreement was negotiated, Maco was aware of Kent’s financial condition and refused to pay more than $20 per hour for Kent’s services. Kent has now sued to rescind the contract with Maco, claiming duress by Maco during the negotiations.

Under the circumstances, Kent will

a. Win, because Maco refused to pay the fair market value of Kent’s services.

b. Win, because Maco was aware of Kent’s serious financial problems.

c. Lose, because Maco’s actions did not constitute duress.

d. Lose, because Maco cannot prove that Kent, at the time, had no other offers to provide consulting services.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Model Based Testing For Embedded Systems Questions!