Introduction

Read the overview below and complete the activities that follow.

Overpowering the Underling

People often enter contracts under pressure from others. That is the nature of negotiation. Nonetheless, sometimes that pressure is so great, either by someone who dominates the other party or who is in a sensitive relationship with the other party, that real consent to the contract is not given. The following hypothetical case presents a highly-pressured situation, in which an employee claims he was subjected by his superiors to undue influence to resign. You must determine whether he has the possibility to rescind his resignation letter.

CONCEPT REVIEW: Undue influence is unfair persuasion and is intended to give relief to persons who are unfairly persuaded to enter a contract while in a position of weakness that makes them particularly vulnerable to being preyed upon by those they trust or fear.

Comprehension Title

Read the hypothetical case below and answer the questions provided.

Corey McMartin, a manager at children's toy store Zingy Thingy, was arrested on criminal charges involving sexual activity with a minor. After he was arrested, questioned by police, booked, released on bail, and had gone two days without food or sleep, he was visited in his home by the CEO of Zingy Thingy and his regional manager. They told McMartin that they were trying to help him and that they had his best interests at heart. They were concerned about the effect that the allegations and arrest could have on their business, because Zingy Thingy obviously relies on families with small children for a significant portion of its customer base. Those customers would be unlikely to frequent a store managed by a sex offender. They advised him to resign immediately, stating that there was no time to consult an attorney. They said that, if he did not resign immediately, Zingy Thingy would fire him. According to company policy, they would then have to disclose the reason for his termination to any subsequent employers who sought a reference. He would probably never be able to find a toy industry job again. They promised that, if he resigned at once, however, the incident would not be publicized and would not jeopardize his career. Exhausted and fearing for his future, McMartin wrote a written letter of resignation, signed it, and gave it to the CEO. The CEO accepted the letter of resignation. The criminal charges against McMartin were later dismissed, and he approached his bosses seeking to resume his employment at Zingy Thingy. When the company refused to reinstate him, McMartin attempted to rescind his letter of resignation, claiming it was invalid because he entered it without his consent and subject to undue influence by his bosses.

Explain the elements of undue influence that McMartin would be required to prove.