Differentiate duress and undue influence in contract formation.

• A. Duress involves legitimate pressure; undue influence is any external influence.
• B. Duress relates to threats; undue influence relates to financial pressure.
• C. Duress involves illegitimate pressure; undue influence arises from improper influence by a dominant party; both can render a contract voidable.
• D. Duress and undue influence are the same concept.

Answer: (C)

Consent in contract formation can be corrupted in two distinct ways. Duress means illegitimate pressure is applied to compel the other party to agree—threats of harm, coercion or other improper pressure that overrides free choice. Undue influence happens when one party, due to a relationship of power, trust, or dominance, improperly sways the other party to enter the contract; the influence is improper not just because it’s external, but because it exploits that relationship to override free judgment. Because either situation undermines genuine consent, the affected party typically has the option to rescind the contract, so both duress and undue influence make a contract voidable rather than automatically void or automatically valid. The correct answer is best because it accurately distinguishes illegitimate pressure from improper influence arising from a dominant position, and notes that both can render a contract voidable. The other statements are off because duress is not legitimate pressure, undue influence isn’t limited to financial pressure, and the two concepts are not the same.