Asked by Kaitlan Phillips on Jun 18, 2024
Verified
The law will carefully scrutinize contracts between a trustee and a beneficiary of the trust, to make sure there was no undue influence by the trustee.
Trustee
An individual or organization that holds and administers property or assets for the benefit of a third party.
Beneficiary
An individual who receives benefits or is entitled to receive benefits from an insurance policy or trust.
Undue Influence
An improper or wrongful persuasion that compromises the free will of someone, making a decision or agreement questionable.
- Differentiate between fraud, duress, and undue influence within contractual agreements.
- Recognize the role of relationships in scrutinizing contracts for undue influence.
Verified Answer
KB
Krishna BhattJun 22, 2024
Final Answer :
True
Explanation :
The law imposes a high duty of care on trustees, including ensuring that any contracts or dealings between a trustee and a beneficiary are fair and free from undue influence, due to the fiduciary relationship between them.
Learning Objectives
- Differentiate between fraud, duress, and undue influence within contractual agreements.
- Recognize the role of relationships in scrutinizing contracts for undue influence.
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