Which of the following is true of undue influence in entering into contracts?
A) Undue influence need not require the overcoming of the innocent party's free will.
B) Undue influence is not grounds for prosecution, as the innocent party has complete freedom to evaluate the terms of the contract.
C) A contract that is entered into because of undue influence is not voidable.
D) A fiduciary or confidential relationship must have existed between the parties for undue influence to be proven.

Question

Quizplus · Accepted Answer

Undue influence occurs when one party uses their position of power or trust in a relationship to unfairly influence the other party to enter into a contract. Therefore, a fiduciary or confidential relationship must exist between the parties for undue influence to be proven. Additionally, a contract entered into because of undue influence is considered voidable, meaning that the innocent party has the option to rescind the contract. Undue influence does require the overcoming of the innocent party's free will, which is why it is considered a form of coercion.

Which of the Following Is True of Undue Influence in Entering