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Contract Law Vitiating Factors Unconscionable Bargain Notes

BCL Law Notes > Contract Law: Vitiating Factors Notes

This is an extract of our Contract Law Vitiating Factors Unconscionable Bargain document, which we sell as part of our Contract Law: Vitiating Factors Notes collection written by the top tier of University College Dublin students.

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• When duress and undue influence fails

• No fixed rules

• Basically, when someone has all advantages, no advice given, unequal,
undervalue, someone giving something up.

Carroll v Carroll 1998
'Apart from the courts' jurisdiction to set aside a transaction on the grounds of undue influence, there is also a jurisdiction to set aside as "unconscionable"
other transactions where the parties to the transaction have unequal bargaining positions and the weaker party has not been adequately protected'

• Overlooks the rule in consideration that it need not be adequate

• Must be factors showing the strangeness of the transaction > condition,
advice, health etc.

• Heavily focused on the circumstances to decide whether it was an equal negotiation or if someone has been taken advantage of.

Boustaney v. Piggott 1995
In determining unconscionable bargain 1) Bargaining impairment which placed the person seeking to set aside the argument at serious disadvantage 2) Did the party seeking to enforce exploit the disadvantage 3) Was it manifestly improvident 4) Complainant must have lacked benefit of advice before agreement entered into

Rae v Joyce 1892
Woman in poor health ended up mortgaging her property at an interest rate of 60% - no duress or U.I but It just appeared outrageous on its face.

Grealish v Murphy 1946
Elderly farmer - mentally deficient - lived alone in isolated rural area. Court used quotation - 'long life had not taught him sense'.

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