Ontario Mortgage Agent Practice Exam 2025 - Free Mortgage Agent Practice Questions and Study Guide

Question: 1 / 400

What recourse is available if a contract is entered into under duress?

The contract may be rescinded

If a contract is entered into under duress, it means that one party was forced or threatened into agreeing to the contract. In this situation, the agreement is considered not to be a voluntary one. This means that the contract can be rescinded, or cancelled, by the innocent party. This is the appropriate recourse in this situation.

Option B is incorrect because the court does not typically modify the terms of a contract if it was entered into under duress. Instead, the contract is usually deemed to be void or unenforceable.

Option C is incorrect because the fact that the contract was entered into under duress means that it is not a valid contract in the first place.

Option D is incorrect because the innocent party should not be held responsible for fulfilling obligations under a contract that was not voluntarily agreed to.

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The court will modify the terms of the contract

The contract will remain valid

The innocent party must continue to fulfill their obligations

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