Robert is a pastor at United Church. One of the members of his congregation, Mrs. Smith, is a

very devout believer.

Robert convinces Mrs. Smith to sell him her farm for $5,000. The actual
value of the farm is $500,000. Mrs. Smith dies and her estate sues to get her farm back. Which of
the following best describes this situation?
A) This is a case of undue influence, so the estate can rescind the contract.
B) This is a case of fraud, so the estate can rescind the contract.
C) Unless Robert can prove that there was no undue influence, the contract can be rescinded.
D) Mrs. Smith is a competent adult and may dispose of her property in any way, and for any
price she sees fit.
E) This is not a case of undue influence because there is no fiduciary relationship.

C

Business

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