Question

Flora is an elderly woman who lives with her niece Galaxy. Flora is dependent on Galaxy for support. Galaxy advises Flora to "invest" in Galaxy's "professional gambling" venture, or Galaxy will no longer support her. Flora liquidates (sells) her other investments and signs a contract with Galaxy, to whom Flora gives the funds. Can Flora set aside (rescind) the contract?

Answer 1

Flora is an elderly woman who is completely dependent on Galaxy. If Galaxy advises her to invest with a threat of not supporting her otherwise, then there is an involvement of undue influence in the process because Galaxy is able to pursue Flora in an undue manner to enter into a Professional gambling contract, threatening about not rendering Flora any support otherwise. It is hence not the willingness of Flora to enter into the contract at her own free will. This could make the contract void, if proven in the Court of Law and thus Flora can set aside the same.