Lou uses undue influence to induce Mona to sign a contract to invest her student loan funds in National Overseas Bank.Mona may
A)avoid the contract or choose to carry it out.
B)do nothing once she has signed the contract.
C)recover from her lender for a failure to influence her "due."
D)recover from the bank for a failure to undo Lou's influence.

Question

Quizplus · Accepted Answer

Undue influence is a situation where one party uses their position of power to persuade another party to act in a way that benefits the first party at the expense of the second party. In this case, Lou used undue influence to induce Mona to invest her student loan funds in National Overseas Bank. Mona can avoid the contract or choose to carry it out. If she chooses to carry it out, she may later argue that the contract was voidable due to undue influence.

Lou Uses Undue Influence to Induce Mona to Sign a Contract