Question

Tommy's parents died in a plane crash and he went to live with his guardian, Aunt Rose. Rose had a very small house and did not have a separate bedroom and bath for 12-year-old Tommy. She and Tommy decided to use some of his inheritance to pay for an addition to the house. He had some shares of stock transferred into Rose's name so that she could sell them when the money was due to be paid. The stock transfers are:

Answer 1

presumed voidable unless Rose can show no unfair advantage was taken.

Step-by-step explanation:

In the given scenario Tommy had some shares of stock transferred into Rose's name so that she could sell them when the money was due to be paid for the addition to the house.

However Tommy is a minor living with his guardian Aunt Rose.

She may have an unfair influence over him that will force him to make the share transfers.

Considering this the transfer of shares can be viewed as voidable until she proves she did not use the unfair advantage of being a guardian to push the transaction through