Edna is induced by her guardian Fran to sign a contract to invest funds in Gold Inc. through Fran's investment firm. Unknown to Edna, Fran realizes a commission from the investment. Most likely, Edna can rescind the contract on the basis of

Question

Quizplus · Accepted Answer

Undue influence occurs when one party takes advantage of a position of power or trust to unduly influence another party to enter into a contract. In this scenario, Fran, as Edna's guardian, has a position of power and trust over Edna, and is using this position to induce her to invest in Gold Inc. without disclosing her commission. This could be considered undue influence, and Edna may have grounds to rescind the contract.

Edna Is Induced by Her Guardian Fran to Sign a Contract