Under what condition can a contract be voided due to undue influence?

A contract can be voided due to undue influence when consent to the terms was improperly obtained. Undue influence occurs when one party takes advantage of their position of power over another party, resulting in an agreement that the influenced party would not have made under normal circumstances. This often involves an imbalance in the relationship, such as a caregiver influencing a vulnerable individual, where the influenced party lacks the opportunity to make an informed and voluntary decision.

In this context, the improper obtaining of consent highlights the lack of free will in the decision-making process. It underscores that the person whose consent was manipulated was not of sound mind or had diminished autonomy, leading to an agreement that lacks true mutual assent. Thus, when undue influence is identified, the affected party may seek to void the contract because the agreement does not reflect genuine consent.

The other conditions presented—such as the verbal nature of an agreement, the presence of coercion, or financial unfavorable terms—do not specifically address the essential aspect of undue influence, which focuses on the improper means of securing consent rather than external threats or the contract's economic impact on one party.