Question

Gene, an accountant, convinces his client Hazel to sign a contract to invest her savings in 2Gether, a nonexistent social-networking Web site. There is clear and convincing evidence that Hazel did not act out of her free will. This is​
A. ​duress.
B. ​fraud.
C. ​mistake.
D. ​undue influence.

Answer 1

Answer:

undue influence

Explanation:

Undue influence is the act in which one person in order to get desirable outcome is able to convince other to take any action or decision which the other person may not have willingly taken.

Such influence can be exerted via use of power, exploiting weakness of other or in case other person is ignorant of some information. Some time manipulating ability of a person also helps him to exert undue influence.

In business, if there is any agreement between two parties and there is proof of undue influence. Then, such agreement becomes void by contract law.

In the problem stated above, Hazel was convinced to invest a nonexistent social networking site. She had not done it willingly but was influenced by Gene. Thus, this event is case of undue influence.