Which term describes the act of pressurizing someone to sign a contract by exploiting trust or authority?

• A. Mistake
• B. Duress
• C. Undue influence
• D. Misrepresentation

Answer: (C)

Undue influence describes pressurizing someone to sign a contract by exploiting trust or authority. It happens when one party holds a position of power or authority in relation to the other and uses that relationship to override the other person’s free will. The influence is considered improper because it leverages vulnerability or dependence rather than genuine, independent judgment. Courts look for a relationship of trust or confidence and evidence that the stronger party exploited that position to obtain a consent that would not have occurred otherwise. If proven, the contract can be set aside as voidable because true voluntary agreement wasn’t present.

This differs from duress, which involves threats or coercion to force agreement; misrepresentation, which rests on false statements that induced assent; and mistake, which is about a misunderstanding of facts.