Government coercion through duress and contract modification

Type :

Term papers

Pages :

5 pages

Format :

.doc

Published date :

07/31/2009

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Summary :

 
 

Table of Contents Government coercion through duress and contract modification Table of Contents

 
  1. Introduction: Freedom NY v. Rumsfeld
  2. Duress and contract modification
    1. Definition of contract modification
  3. Rumsfeld v. Freedom NY: Background
    1. Understanding the government duress involved in Freedom
    2. The contract awarded to FII
    3. The governments attempt to hide behind the DAR regulations
  4. Government duress as a concept
    1. Explanation why Freedom is one of the only contractors allowed to use government duress as a defense
    2. The reason why coercion is difficult to prove
    3. Freedom's claims
  5. Contract modification through duress
  6. Conclusion
  7. Bibliography

Abstract

In Rumsfeld v. Freedom NY, Inc., 329 F.3d 1320 (2003), the government contractor was finally able to procure some relief after a 17 year struggle to rectify the shameful, bad faith tactics of the Defense Logistics Agency. The government's ACO, Marvin Lieberman, breached the contract by refusing to release authorized progress payments. By withholding these progress payments, the government literally brought Freedom NY to the brink of bankruptcy.

The ASBCA found that the ACO breached the contract each time he withheld or delayed a progress payment to Freedom. The ACO attempted to withhold progress payments so that Freedom would agree to contract modifications releasing the government from all legal causes of action by Freedom. The ASBCA held that withholding progress payments for the sole reason of forcing Freedom to agree to contract modifications is considered duress and invalidates the modifications.

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About the author :

pencil image Christopher L. Adjunct Professor, Education
Level :General public Study : International law School/University : University of Baltimore

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