Nero is an elderly man who lives with his nephew Mervyn. Nero is depend-ent on Mervyn for support. Mervyn advises Nero to "invest" in Mervyn's "profes-sional gambling" venture, or Mervyn will no longer support him. Nero liq-uidates his other investments and signs a contract with Mervyn, to whom Nero gives the funds. Can Nero set aside this contract?
This situation describes undue influence, which arises from a relationship in which one party can, through unfair per-suasion, influ-ence or overcome the free will of another. Other examples of such rela-tionships include business partners, attorney-client, and doctor-patient. A contract entered into under undue influence lacks voluntary consent and is voidable. In this problem, the influ-ence of Evan over Nero is buttressed by Nero's reli-ance on Mervyn for support. Nero does not have a claim for duress, but Mervyn's influence over Nero's investment decision is an exercise of undue influence. The contract is primarily for the bene-fit of Mervyn, and Mervyn used un-fair persuasion in securing Nero's funds. Nero can avoid the contract.
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