Don is an elderly man who lives with his nephew Evan. Don is dependent on Evan for support. Evan advises Don to "invest" in Evan's "professional gambling" venture, or Evan will no longer support him. Don liquidates his other investments and signs a contract with Evan, to whom Don gives the funds. Can Don set aside this contract?
What will be an ideal response?
This situation describes undue influence, which arises from a relationship in which one party can, through unfair persuasion, influence or overcome the free will of another. Other examples of such relationships include business partners, attorney-client, and doctor-patient. A contract entered into under undue influence lacks genuineness of assent and is voidable. In this problem, the influence of Evan over Don is buttressed by Don's reliance on Evan for support. Don does not have a claim for duress, but Evan's influence over Don's investment decision is an exercise of undue influence. The contract is primarily for the benefit of Evan, and Evan used unfair persuasion in securing Don's funds. Don can avoid the contract.
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