Lacy uses undue influence to induce Mina to sign a contract to invest her National Education Fund student loan money in Overseas Bank. Mina may
A) avoid the contract.
B) do nothing after Mina signs the contract.
C) recover from National for a failure to monitor Mina's money.
D) recover from Overseas for a failure to undo Lacy's influence.

Question

Quizplus · Accepted Answer

Undue influence is a form of coercion that involves one party taking advantage of its position of power over another party to induce it to enter into an agreement that is not in its best interest. In such cases, the agreement is considered voidable at the option of the party that was unduly influenced. Therefore, Mina has the right to avoid the contract due to Lacy's undue influence.

Lacy Uses Undue Influence to Induce Mina to Sign a Contract