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Assignment:
Bell v. Levy. John Bell is a Canadian businessman who advanced the sum of $250,000 to another businessman named David Levy. The money was to be used for investment in gaming and casino projects in Asia. Shortly after the funds were advanced, the gaming industry in Asia took a downturn and Mr. Bell and Mr. Levy entered into negotiations to repay the money advanced. At the completion of the negotiation, the parties signed a contract in which Mr. Levy agreed to repay the full amount of $250,000 to Mr. Bell. A few months after the contract was signed, Mr. Levy stopped repaying Mr. Bell and launched a court action seeking to have the contract overturned due to economic duress.
Specifically, Mr. Levy claimed that during the contract negotiations, Mr. Bell said that if he did not sign the contract he would "report his family members to the tax authorities" and that he would "bad mouth Levy to their mutual business contracts and to Canadian government officials in Ottawa." Do you believe a case for economic duress is made here? Why or why not? What do you think the line is between economic duress and hard bargaining?
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