Centech Group, Inc. v. Getronicswang Co.
United States Court of Appeals for the Fourth Circuit
63 Fed. Appx. 97 (4th Cir. 2003)
After Centech (plaintiff) failed to perform its prime contract with the Navy, it entered a memorandum of understanding (MOU) with subcontractor I-NET conditionally agreeing to shift responsibility for the contract, later replacing it with a Revised MOU expressly requiring I-NET to identify $10 million in project opportunities for Centech in exchange for I-NET actually assuming the prime contract; when I-NET failed to deliver those opportunities, Centech sued for breach, and I-NET argued (among other defenses) that the Revised MOU lacked new consideration and, alternatively, that Centech argued it had been procured under duress from I-NET's threats to stop performing. The district court granted I-NET summary judgment, and Centech appealed.
Whether a contract is voidable for duress under Virginia law when the alleged coercive threat did not leave the aggrieved party without any reasonable alternative other than to assent to the contract.