Duress, Unconscionability + capacity Flashcards
a person should not be held to a contract if what?
they entered it as a result of threats or undue pressure
what does the doctrine of unconscionability not involve?
threats or pressure of any
kind
what does the doctrine of unconscionability describe?
describes terms that are so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superior bargaining power, that they are contrary to good conscience.
the common law doctrine of duress is what?
very limited
a contract will be voided for what?(doctrine of duress)
actual physical violence to one party to the contract, or the threat thereof
what also constitutes duress?
imprisonment unless lawful
the duress must have done what?
caused the victim to enter into the contract (does not have to be the sole reason)
in the case of economic duress, the victim must show what?
that they would not have entered the contract ‘but for’ the threat.
what does economic duress involve?
getting someone to enter into a contract by making threats to harm that person financially if they do not agree to enter the contract
what does unconscionable bargains often involve?
where an elderly person sells their property for less than it is worth, or even gives it away
what does unconscionable bargains relate to?
the equitable jurisdiction of the courts to set aside or amend harsh bargains
if a transaction can be classified as an unconscionable bargain, what can the court do?
either set the entire transaction aside, or amend the terms to make it fair
to uphold unconscionable bargain, the stronger party must show what?
that the bargain is fair, just and reasonable.
what must the stronger party convince the court of in the case of an unconscionable bargain?
that the other party contracted with their eyes open and got the market value of their property
who do not have a capacity to enter contracts?
minors, persons of unsound mind and people who were completely intoxicated at the time they made the contract.
what did The Age of Majority Act, 1985 change?
the age of majority from twenty-one to
eighteen years
what are the laws divergent policies in relation to contracts with minors?
-wants to protect them from unscrupulous adults + own youthfulness and inexperience
-wishes to protect the interests of adults who contract with minors in good faith
how are policies related to minors reconciled?
by treating minors as not being bound by their own contracts, but by treating contracts for necessaries as binding and other contracts as merely voidable at the instance of the infant
