Mona Is Induced by Her Guardian Newt to Sign a Contract

question 25

Multiple Choice

Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in Overseas Bank through Newt's investment firm.Unknown to Mona,Newt realizes ongoing commissions from the investment.Most likely,Mona may

• A)not rescind the contract.
• B)rescind the contract on the basis of undue influence.
• C)rescind the contract on the basis of mistake.
• D)rescind the contract on the basis of unconscionability.

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Definitions:

Hindsight Bias

The inclination to see events that have already occurred as being more predictable than they were before they took place.

Critical Thinking

Dedicated to an in-depth inspection and critique of a problem with the intent of deriving a verdict.

Overconfidence

Overconfidence is a cognitive bias in which a person's subjective confidence in their abilities or outcomes exceeds the objective accuracy of those assessments.

Hypothesis

A tentative explanation put forward based on minimal evidence, intended as a preliminary point for more detailed research.