What characterizes duress in contract law?

In contract law, duress refers specifically to situations where one party is forced into an agreement against their will due to coercion, threats, or undue pressure exerted by another party. This element of coercion or threat is crucial because if an agreement is made under duress, it is considered invalid; the party that was coerced is not acting out of mutual consent, but instead is compelled to agree, which undermines the voluntary nature that is fundamental to valid contracts.

The other choices reflect situations of valid agreements with elements such as mutual consent, informed decision-making, and the absence of pressure, which are the opposite of duress. In contrast, duress directly involves the use of threats or coercive tactics that impact an individual's freedom to act, leading to an agreement that may not truly reflect their intentions or interests.