Question

Laura, who is a widow, sold a piece of property and planned to live off the proceeds during her retirement. Laura has one son, Chris, who helps take care of her home and plans to move in with her and take care of her when she is too old to take care of herself. Chris asks Laura to invest her money in his restaurant, which is faltering. He tells her that if she does not lend him the money she will never see him again. She is afraid of being alone and agrees to his request, but soon changes her mind and asks for her money back. Chris claims they have formed a binding contract. In fact, the contract may be voidable, because it was formed as a result of

Answer 1

Answer: Chris claims they have formed a binding contract. In fact, the contract may be voidable, because it was formed as a result of undue influence.

Explanation: Undue influence happens when one person takes advantage of another by using their position of power. Since Chris takes care of Laura's home and threatening his mom that she would never see him again, Chris holds the power. He is using undue influence to force his mom to invest her money into his restaurant.