Which situation best describes undue influence?

Undue influence occurs when one party takes advantage of their position of power over another party by coercing them into an agreement or contract. This situation typically arises in relationships where there is a significant disparity in power or authority, such as between a caregiver and their patient, a lawyer and their client, or a financial advisor and their client.

In this context, the correct choice illustrates how a party in a superior position may unduly influence another party, often undermining the latter's free will and capacity to make an informed decision. The essence of undue influence lies in the exploitation of that superior position, making it possible for the more powerful party to manipulate the agreement to their advantage.

Options referring to physical force or a lack of intent to fulfill indicate more overt forms of coercion or deceit but do not capture the subtlety of psychological manipulation inherent in undue influence. Similarly, mutual agreement to terminate a contract does not involve inducing one party to enter into an agreement under duress or manipulation. Therefore, the key aspect of undue influence is that it involves the exploitation of a relationship imbalance rather than outright coercion or absence of intent.