What constitutes a key aspect of coercion in contracts?

Coercion in contracts primarily refers to the act of creating an environment of fear or intimidation that leads one party to agree to terms against their will. This element of fear is crucial because it undermines the voluntary nature of contract formation, which is based on mutual consent. When coercion is present, it compromises the integrity of the agreement, as one party is not genuinely willing to enter into the contract but is instead compelled to do so due to threats or pressure.

In situations involving coercion, the victim may feel a lack of options or an overwhelming sense of dread, which ultimately influences their decision-making process. This stands in stark contrast to negotiations held in good faith where both parties seek mutually beneficial outcomes, or to offers of rewards or promises of future benefits, which are legitimate components of contract discussions. The presence of genuine consent is essential for enforceability, and coercion directly contradicts this principle by imposing undue pressure on one party.