Which of the Following Contracts Would Be Void Because of Undue

question 58

Multiple Choice

Which of the following contracts would be void because of undue influence?

• A) Mikhail wants Ivana to sign a contract for the sale of her apartment. He tells her that if she does not sign the contract, he will harm her son.
• B) Janet owns a pair of zircon earrings. She sells them claiming they are diamonds and receives a much higher price for them.
• C) Carla unknowingly sells a painting to a collector thinking it's genuine. However, the collector finds out that it actually is an imitation.
• D) Gary has been the McGill family attorney for decades. When he needs investors for his business, he demands that Mr. McGill invest in the new business.

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Definitions:

Market Rate

The prevailing rate or price at which goods, services, or securities are traded in a competitive marketplace.

Bond Issue

The method through which a corporation or governmental entity generates capital by issuing bonds to investors.

Selling Price

The amount of money a buyer pays to acquire a product or service from a seller.

Effective Interest Method

A method of calculating the amortized cost of a bond and of allocating interest income over the bond's life, reflecting the constant rate of interest over the period.