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Home/Law/Walters hired Erlich, a CPA, to help him file his taxes using the accrual basis after doing it on a cash basis previously. Erlich promises to help sort an issue with Walter’s tax files at $1,000. Following a directive to protect by 5th Oct 2008, Erlich asked Walters to sign a new fee agreement in which he would pay Erlich $1000 plus an additional 8% on the savings. Walters at first refuses to sign the agreement but later signs it with fear that he may be forced to pay the whole amount of $134,000 following the passage of the deadline. Upon review, the IRS directs that Walters should pay $21,000. Walters sued to rescind the agreement on fees charged. Will Walters successfully rescind the contract?

Walters hired Erlich, a CPA, to help him file his taxes using the accrual basis after doing it on a cash basis previously. Erlich promises to help sort an issue with Walter’s tax files at $1,000. Following a directive to protect by 5th Oct 2008, Erlich asked Walters to sign a new fee agreement in which he would pay Erlich $1000 plus an additional 8% on the savings. Walters at first refuses to sign the agreement but later signs it with fear that he may be forced to pay the whole amount of $134,000 following the passage of the deadline. Upon review, the IRS directs that Walters should pay $21,000. Walters sued to rescind the agreement on fees charged. Will Walters successfully rescind the contract?

Walters will successfully rescind the contract. The case can be determined in terms of contractual validity and enforceability. For a contract to be valid and enforceable, it is legally required to meet all the elements of an enforceable contract. The elements of a contract are offer, consideration, acceptance, contractual capacity, and the mutual intent to enter the contract. Walters did not accept the offer until Erlich told him to pay the whole amount if the deadline was passed. There was, therefore, no mutual intention to enter the contract.

The case can be treated the same as the case KALPLAN v. Kaplan, 1, a contract that is signed under duress is voidable since the person who signed it was forced to do so by the wrongdoing or threat of the other party, and that is what the term “duress” means. Morally wrong actions may constitute duress; this criterion applies to criminal or contractual violations and morally wrong activities in the broadest sense. Restatement of Contracts, 492, defines duress as a danger to life, limb, or liberty.

The threat must have been sufficiently frightening that a person of ordinary bravery would have been compelled to comply with it. The criteria of whether a man of ordinary bravery would surrender to the threat have been replaced with a test that inquires if the threat has left the individual devoid of the character of mind necessary for the forging of a contract under present ideas and advances.

Walters can argue that he was threatened by Erlich using the passage of the deadline. He can claim to have been under duress when signing the new fee agreement with Erlich. As a result, the contract between the two lacked the element of mutual intent by both parties to enter the contract in question. The contract can then be rendered invalid based on failure to meet all the elements of a contract. Walters is likely to win the lawsuit. Walters will only be required to pay Erlich an amount of $1,000 owed to him. This is because the amount had already been agreed upon in the initial contract that met all the elements of a contract.

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Academic.Tips. (2023) 'Walters hired Erlich, a CPA, to help him file his taxes using the accrual basis after doing it on a cash basis previously. Erlich promises to help sort an issue with Walter’s tax files at $1,000. Following a directive to protect by 5th Oct 2008, Erlich asked Walters to sign a new fee agreement in which he would pay Erlich $1000 plus an additional 8% on the savings. Walters at first refuses to sign the agreement but later signs it with fear that he may be forced to pay the whole amount of $134,000 following the passage of the deadline. Upon review, the IRS directs that Walters should pay $21,000. Walters sued to rescind the agreement on fees charged. Will Walters successfully rescind the contract'. 12 February.

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Academic.Tips. (2023, February 12). Walters hired Erlich, a CPA, to help him file his taxes using the accrual basis after doing it on a cash basis previously. Erlich promises to help sort an issue with Walter’s tax files at $1,000. Following a directive to protect by 5th Oct 2008, Erlich asked Walters to sign a new fee agreement in which he would pay Erlich $1000 plus an additional 8% on the savings. Walters at first refuses to sign the agreement but later signs it with fear that he may be forced to pay the whole amount of $134,000 following the passage of the deadline. Upon review, the IRS directs that Walters should pay $21,000. Walters sued to rescind the agreement on fees charged. Will Walters successfully rescind the contract? https://academic.tips/question/walters-hired-erlich-a-cpa-to-help-him-file-his-taxes-using-the-accrual-basis-after-doing-it-on-a-cash-basis-previously-erlich-promises-to-help-sort-an-issue-with-walters-tax-files-at-10/

References

Academic.Tips. 2023. "Walters hired Erlich, a CPA, to help him file his taxes using the accrual basis after doing it on a cash basis previously. Erlich promises to help sort an issue with Walter’s tax files at $1,000. Following a directive to protect by 5th Oct 2008, Erlich asked Walters to sign a new fee agreement in which he would pay Erlich $1000 plus an additional 8% on the savings. Walters at first refuses to sign the agreement but later signs it with fear that he may be forced to pay the whole amount of $134,000 following the passage of the deadline. Upon review, the IRS directs that Walters should pay $21,000. Walters sued to rescind the agreement on fees charged. Will Walters successfully rescind the contract?" February 12, 2023. https://academic.tips/question/walters-hired-erlich-a-cpa-to-help-him-file-his-taxes-using-the-accrual-basis-after-doing-it-on-a-cash-basis-previously-erlich-promises-to-help-sort-an-issue-with-walters-tax-files-at-10/.

1. Academic.Tips. "Walters hired Erlich, a CPA, to help him file his taxes using the accrual basis after doing it on a cash basis previously. Erlich promises to help sort an issue with Walter’s tax files at $1,000. Following a directive to protect by 5th Oct 2008, Erlich asked Walters to sign a new fee agreement in which he would pay Erlich $1000 plus an additional 8% on the savings. Walters at first refuses to sign the agreement but later signs it with fear that he may be forced to pay the whole amount of $134,000 following the passage of the deadline. Upon review, the IRS directs that Walters should pay $21,000. Walters sued to rescind the agreement on fees charged. Will Walters successfully rescind the contract?" February 12, 2023. https://academic.tips/question/walters-hired-erlich-a-cpa-to-help-him-file-his-taxes-using-the-accrual-basis-after-doing-it-on-a-cash-basis-previously-erlich-promises-to-help-sort-an-issue-with-walters-tax-files-at-10/.


Bibliography


Academic.Tips. "Walters hired Erlich, a CPA, to help him file his taxes using the accrual basis after doing it on a cash basis previously. Erlich promises to help sort an issue with Walter’s tax files at $1,000. Following a directive to protect by 5th Oct 2008, Erlich asked Walters to sign a new fee agreement in which he would pay Erlich $1000 plus an additional 8% on the savings. Walters at first refuses to sign the agreement but later signs it with fear that he may be forced to pay the whole amount of $134,000 following the passage of the deadline. Upon review, the IRS directs that Walters should pay $21,000. Walters sued to rescind the agreement on fees charged. Will Walters successfully rescind the contract?" February 12, 2023. https://academic.tips/question/walters-hired-erlich-a-cpa-to-help-him-file-his-taxes-using-the-accrual-basis-after-doing-it-on-a-cash-basis-previously-erlich-promises-to-help-sort-an-issue-with-walters-tax-files-at-10/.

Work Cited

"Walters hired Erlich, a CPA, to help him file his taxes using the accrual basis after doing it on a cash basis previously. Erlich promises to help sort an issue with Walter’s tax files at $1,000. Following a directive to protect by 5th Oct 2008, Erlich asked Walters to sign a new fee agreement in which he would pay Erlich $1000 plus an additional 8% on the savings. Walters at first refuses to sign the agreement but later signs it with fear that he may be forced to pay the whole amount of $134,000 following the passage of the deadline. Upon review, the IRS directs that Walters should pay $21,000. Walters sued to rescind the agreement on fees charged. Will Walters successfully rescind the contract?" Academic.Tips, 12 Feb. 2023, academic.tips/question/walters-hired-erlich-a-cpa-to-help-him-file-his-taxes-using-the-accrual-basis-after-doing-it-on-a-cash-basis-previously-erlich-promises-to-help-sort-an-issue-with-walters-tax-files-at-10/.

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