Directions: Given below is a statement of principle, followed by a factual situation. Apply the principle to the facts and select the most appropriate answer among three alternatives given. Encircle your choice and explain why you think your answer is correct in not more than 3 to 4 lines. If it exceeds 4 lines, then penalty may be imposed.
Principle 1: If there is undue influence on a party to an agreement,he may refuse to perform the agreement. Principle 2: When one party in an agreement is in a position to dominate the will of the other party and he uses his position over the other party to get the other party's consent to the agreement, this is undue influence. Fact: The landlord asks the tenant to agree to increase the rent to double the previous amount or to vacate the house. The tenant had to agree to give double the previous rent and continue living in the house. He thereafter refuses to pay.
Which of the following answer you think more appropriate?