Maria, an elderly widow, has a close relationship with her financial advisor, Tom. Recently, Tom convinced Maria to transfer a significant portion of her savings into an investment fund he manages, assuring her it was the best option for her security. Maria later claims that Tom manipulated her emotionally, taking advantage of her trust and vulnerability to benefit himself financially. Which of the following is the BEST defense Maria can use to void the investment agreement?
Undue influence is the appropriate defense in this scenario because it occurs when one party takes advantage of a trusted relationship to influence the other party's decisions unfairly. Tom, as Maria's financial advisor, held a position of trust and exploited it to persuade her to transfer her savings. Duress involves direct threats or coercion, which are not present in this situation. Fraud requires intentional deception, and mistake involves erroneous beliefs about facts, neither of which are the primary issues here.
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What is undue influence and how does it apply to this situation?
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How does undue influence differ from duress in legal terms?