Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in OptiBank 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

Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in OptiBank 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.

Quizplus · Accepted Answer

Mona may rescind the contract on the basis of undue influence because Newt, as her guardian, has a position of trust and has used that position to benefit personally from the investment, which Mona was not aware of.

Mona Is Induced by Her Guardian Newt to Sign a Contract