Nero is an elderly man who lives with his nephew Mervyn. Nero is dependent on Mervyn for support. Mervyn advises Nero to "invest" in Mervyn's "professional gambling" venture, or Mervyn will no longer support him. Nero liquidates his other investments and signs a contract with Mervyn, to whom Nero gives the funds. Can Nero set aside this contract?

Explanation:

This is :

This situation describes undue influence, which arises from a relationship in which one party can, through unfair persuasion, influence or overcome the free will of another. Other examples of such relationships include business partners, attorney-client, and doctor-patient. A contract entered into under undue influence lacks voluntary consent and is voidable. In this question, the influence of Evan over Nero is buttressed by Nero’s reliance on Mervyn for support. Nero does not have a claim for duress, but Mervyn’s influence over Nero’s investment decision is an exercise of undue influence. The contract is primarily for the benefit of Mervyn, and Mervyn used unfair persuasion in securing Nero’s funds. Nero can avoid the contract.

Based on the information given in the question, Nero should avoid the contract.

This situation that's described in the question is an undue influence which occurs when an individual persuades another party to agree to a particular thing.

In this case, Mervyn threatens Nero by saying that he won't support him anymore if he doesn't invest in the gambling.

It should be noted that such contract is voidable as it was based on undue influence. Therefore, in this case, the contract can be avoided by Nero.

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