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First Principles of Business Law |
| Circumstances that may invalidate a legal transaction |
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3. Undue Influence |
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3.3. Situations requiring proof of a 'general' controlling influence |
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Read the facts and the question and then choose the best answer. A, an accountant, says to B, his client: "I have reviewed your financial situation and I think you should sell your farm in Tasmania as soon as possible. I am prepared to offer you $150,000 for it, which is what you paid for it last year." B replies to A: "Well, you know I don't understand anything about my financial affairs. I have come to totally rely on your advice in such matters and if that's what you think I must do, have the papers prepared and I'll sign them." If B wants to avoid this contract, would he have to prove both that A had a general controlling influence over him, and that A used this influence improperly to get B's consent to the contract? |
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