Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in Oil Inc. through Newt's investment firm. Unknown to Mona, Newt realizes a commission from the investment. Most likely, Mona may rescind the contract on the basis of
A) duress.
B) fraud.
C) mistake.
D) undue influence.

Question

Quizplus · Accepted Answer

Mona may rescind the contract on the basis of undue influence because Newt, as her guardian, used his position of trust to induce her to sign the contract for his own benefit.

Mona Is Induced by Her Guardian Newt to Sign a Contract