Which scenario exemplifies undue influence in a contractual agreement?

The scenario in which a family member persuades an elderly relative to change their will is an apt example of undue influence in a contractual agreement. Undue influence refers to a situation where one party exerts an excessive level of influence over another, often taking advantage of a relationship of trust or dependency. In this case, the family member likely holds a position of power or trust over the elderly relative and may unduly influence their decision to alter their will in a way that may not truly reflect the desires or best interests of the elderly person.

This particular relationship is critical because it illustrates how vulnerability can be exploited. The elderly relative might not fully understand the implications of changing the will or may feel compelled to comply with the wishes of the family member due to their emotional bond, thus lacking the independence needed to make an informed decision.

Other scenarios differ significantly from this definition of undue influence. Coercion involves threats, which align more with duress rather than undue influence. Similarly, feeling pressured to accept unfavorable loan terms suggests a different type of high-pressure sales tactic rather than the subtler manipulation inherent in undue influence. Lastly, agreeing to terms after a lengthy discussion implies informed consent and a balanced negotiation process, which does not align with the concept of undue influence.