Question
Over several years, Craig has become increasingly frail and his capacity to understand financial decisions has worsened. Additionally, Craig only went to school until grade
Over several years, Craig has become increasingly frail and his capacity to understand financial decisions has worsened. Additionally, Craig only went to school until grade 9 and has poor literacy.
One day, a neighbour four doors down who hardly ever talks with Craig sees him on the street and says, You know, you have a great house. If you ever think about selling I would be very interested.
Well I like yours, says Craig. How about we swap?
As a result of the discussion, the neighbour and Craig enter contracts to swap their houses. During this process, the neighbour has to constantly read sections of the contract out and point out where Craig is to sign. At one point Craig asks, So this is a good deal for me as well, isnt it?
The neighbour knows Craigs house is only worth half the value of his. Sure you like my house dont you? As a result, Craig signs the contract where the neighbour shows him to sign.
Can Craig avoid the contract?
Yes, as the neighbour has engaged in economic duress.
Yes, as the neighbour has applied undue influence.
No, as all the elements of a simple contract are satisfied.
Yes, as the neighbour is acting unconscionably.
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