ACTSC371 Lecture Notes - Lecture 9: Financial Institution, Unconscionability, Oral Contract
4 Jan 2016
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for someone who needs to be on time to court. Unconscionable: shocking to the conscience against our social values that something like: threat of prosecution. Inequality of bargaining power unconscionable this is permitted. Mr. bundy had a nephew who was very bad businessman goes to lloyds bank to get a loan but he doesn"t have a good credit, so he was told he needs a guarantor. Nephew went to the uncle to get the guarantor, bundy was not told to get ila. And when the business failed, and the bank went after bundy. Court said because lloyds took advantage of their power as a financial institution to go after bundy (unconscionability) and the failure to warn bundy about ila has rendered bundy the winner of the case: duress. Must act promptly about the undue influence or else it loses validity. If proven, the person can claim the contract to be voidable.
