Font size
WorksheetsW4 M3 - Contracts 2 Quiz
Total questions: 11
Worksheet time: 8mins
Where a party in a position of influence over another exercises their influence to effect the weaker party's decision to enter the contract. What does this refer to?
Unconscionability
Undue Influence
Actual Undue Influence
Doctrine in Johnson v Buttress (1936).
Where the source of the power to dominate is not found in an existing relationship but rather in the particular situation, this refers to (a) Undue Influence
Which type of undue influence refers to: well defined categories of relationship recognised by law as naturally giving rise to a relationship of influence.
Relationships of Influence in Fact
Presumed Undue Influence
Presumed Relationships of Influence.
Legally Categorised Undue Influence
When assessing relationships of influence in fact, the court will consider the whole of the situation. Select all relevant circumstances the court may consider:
Characteristics of the parties (age, intelligence, health etc.).
The extent of inequality in their situation.
Whether the law recognises their relationship as naturally being one of influence.
How reckless/improvident the transaction was on the part of the weaker party.
Regarding undue influence, an innocent party may (a) a contract as a remedy.
However, rescission is NOT available if... (select all that apply).
Substantial restitution is not possible.
The innocent party ratified/affirmed the contract.
The defendant does not want to rescind the contract.
Third parties have subsequently acquired interest in the subject matter.
What differentiates unconscionability from undue influence?
The will of the innocent party is the RESULT of their disadvantageous position which the other party took advantage of.
The innocent party's will is not independent and voluntary, it is overborne.
The will of the innocent party is independent and voluntary.
The innocent party is at a special disadvantage.
What are the 2 elements the weaker party must show to establish unconscionability?
The other party took advantage of the weaker party.
The weaker party was ill.
The weaker party was under a 'special disability'.
The other party knows or should have known of that disability.
What are some of the consequences of Unconscionability?
Set aside the contract.
Award equitable compensation.
Rectify the contract.
Refuse to order specific performance of the contract.
According to ACCC v Lux Distributors P/L (2013) how might the court determine whether conduct is unconscionable?
By reference to the norms and standards of society.
By reference to the ordinary and reasonable person.
By reference to what is accepted as reasonable behaviour by parties to the case.
By reference to community standards.
Select all remedies for statutory unconscionability...
Other
Injunction
Damages
Recission
