Unconscionable Bargains
Contracts may be invalidated where consent is not freely given due to duress, undue influence, or unconscionable bargains. Duress involves coercion that negates free will, while undue influence arises in relationships of trust where one party improperly influences the other. Unconscionable bargains occur when a stronger party exploits a weaker party’s vulnerability to secure an unjust transaction.
An unconscionable bargain involves gross unfairness, often linked to the weaker party’s disadvantage, such as illiteracy, age, or financial inexperience, and requires the stronger party to have knowingly taken advantage. Courts may set aside such transactions, particularly in domestic or private dealings, if they are manifestly unfair or improvident. However, commercial contracts are less likely to be invalidated on these grounds.
In Ireland, courts have taken a broader approach to unconscionable bargains than in other jurisdictions, emphasising fairness and often scrutinising transactions involving vulnerable individuals. Even independent legal advice may not suffice to uphold a transaction if it is deemed grossly unfair.
Equitable remedies for unconscionable bargains include varying or setting aside agreements, with discretion based on fairness. Consumer credit legislation further protects against harsh terms, allowing courts to revise or void agreements deemed excessively unfair or oppressive. Delay in seeking relief may bar equitable remedies.
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