Contracts and Sales Multistate Bar Practice Exam

Which scenario best illustrates undue influence?

1. A casual conversation leading to a contract

2. A caregiver pressuring a patient for financial support

3. Two parties agreeing to terms without pressure

4. A business negotiation conducted in good faith

The correct answer is: A caregiver pressuring a patient for financial support

The scenario that illustrates undue influence involves a caregiver pressuring a patient for financial support. Undue influence arises when one party exerts excessive pressure on another party in a relationship of trust or dependency, leading to an unfair advantage in the agreement. In this case, the caregiver, who holds a position of trust and influence over the patient, leverages that relationship to persuade the patient to provide financial support. The nature of the caregiver-patient relationship typically involves a vulnerability on the part of the patient, who may be reliant on the caregiver for physical care or emotional support. This dynamic can create an imbalance where the patient may feel compelled to acquiesce to the caregiver's demands, thereby demonstrating the characteristics of undue influence. In contrast, the other scenarios do not exhibit the same level of coercive pressure or exploitation of a trusting relationship. Casual conversations leading to a contract and business negotiations conducted in good faith both imply voluntary agreement without undue pressure. Similarly, agreements reached by parties without pressure reflect a balanced negotiation where both sides have equal bargaining power, indicating that undue influence is not present.