Unconsionable Bargain

Question 1

Test - recent
one is vulnerable to being taken unfair advantage of
unfairness in the transaction
moral culpability in the conduct
knew, or ought to have known, of the other party’s vulnerability
absence of appropriate independent advice

Answer 1

Allied Irish Bank plc v. DX

Question 2

pregnant and poor woman goes to a money lender
60% fixed interest rate
Court of Appeal set aside the “bargain” and substituted an interest rate of 5%.

Answer 2

Rae v. Joyce

Question 3

a sale of his inheritance to a brother in law in exchange for fast cash
one party has taken undue advantage of the other, by reason of the circumstances

Answer 3

Slator v. Nolan

Question 4

Comments on the thin line between undue influence (where relationship is examined) and uncoscionable bargain (where deal is examined)

Answer 4

Carrol v Carrol

Question 5

• plaintiff was an elderly farmer, mentally deficient, difficult, intransigent and almost illiterate
• The plaintiff invited the defendant to visit and agreed to assign to the defendant his farm absolutely on his death, subject to a life interest. The defendant would have a right of residence and would work without reward on the farm.
• set aside - the solicitor did not know all the material facts

Answer 5

Grealish v. Murphy

Question 6

8 years after transaction and 4 years after advised to do so by a solicitor, sued
Would not be equitable - the son worked at the property for 9 years now, unforeseeable

Answer 6

JH v. WJH

Question 6

loss adjuster had advised the plaintiff he would be better off not retaining a lawyer as the lawyer would take a cut of 25% and that the plaintiff was getting in the sum of $60,000 a whole $20,000 more than he should be.

Answer 6

Doan v. Insurance Corporation of British Columbia

Question 7

her former employer, whom she trusted, advised her in the matter, and was present when the deed was completed. It was a fair and honest transaction, and although the age of the old lady threw the onus on her of showing that he took no advantage, that onus has been discharged by him.

Answer 7

Kelly v. Morrisroe

Question 7

‘shocks the conscience of the court’. committed herself to a personal liability far beyond her slender means, risking the loss of her home and personal bankruptcy, and obtained nothing in return beyond a relatively small and possibly temporary increase in the overdraft facility available to her employer, a company in which she had no financial interest.

Answer 7

Credit Lyonnais v. Burch