What is the status of a contract when undue influence is proven?

When undue influence is proven in a contractual agreement, the contract is considered voidable. Undue influence occurs when one party takes advantage of their position of power over another party, effectively coercing them into entering a contract against their free will. This manipulation undermines the essential element of consent that is required for a contract to be valid.

As a result, the party that was influenced has the right to either affirm or rescind the contract. If they choose to rescind, the contract can be deemed voidable, allowing the influenced party to escape the obligations of the contract. This reflects the legal recognition that a contract formed under undue influence lacks the necessary voluntary consent to be fully enforceable. Therefore, the option indicating that the contract is voidable accurately captures the status of such an agreement when undue influence is established.