Hackley v. Headley
Supreme Court of Michigan
8 N.W. 511 (Mich. 1881)
Relevant factsFree
Headley (plaintiff) contracted to cut and deliver logs to Hackley (defendant). When Headley sought payment, Hackley disputed the amount owed and refused to pay more. Because Headley was in serious financial trouble and needed money immediately or faced ruin, he accepted the lesser amount Hackley offered. Headley later sued to recover the difference he claimed was still owed. The trial court ruled for Headley, and Hackley appealed.
IssueFree
Whether a party acts under duress when it accepts less than it is owed on a contract because of its own poor financial condition, rather than because of the other party's unlawful coercion.