Legal Question in Business Law in California

Contract Termination

How can I terminate a contract that I feel I was unduly pressured into and, after I singned said contract on-line, they listed about 15 items they would not be responsible for, which, had I known before signing, I would not have signed.


Asked on 1/23/07, 4:26 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Contract Termination

You probably can't terminate it without some liability for damages. "Undue pressure" sufficient to allow unilateral rescission would have to rise to the level of "duress, menace, fraud, or undue influence," probably in your case duress or menace, which sorta means the other party was holding a gun to your head, or withholding bread and water. Ordinary high-pressure selling techniques do not usually rise to the level of duress or menace. See Civil Code section 1689(b) for the grounds for unilateral rescission.

It is within the realm of possibility that failure to mention the 15 items before you signed might constitute fraud; it would depend upon their nature and significance. If you were buying a car, for example, and one thing they failed to mention was that the steering wheel was optional at extra cost, that would be fraud. On the other hand, not being responsible for damage in transit during delivery is an example of many items of which the failure to mention would not be fraud.

If you are sufficiently unhappy with the contract that you are prepared to breach it rather that carry it out, you should consider how to do so in a way that minimizes harm to the other party, and hence minimizes your potential liability for damages. Often it is best to notify the other party of your intent to breach right away, before the other party takes action in reliance on the contract.

Another good idea is to ask the other party voluntarily to excuse you from performance under the contract. Tell them you made a mistake, or think you were placed under duress, or believe you were defrauded; maybe they'd rather not fuss over a matter that might go to litigation and will agree to tear up the contract.

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Answered on 1/23/07, 5:39 pm


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