Unformatted text preview: nscionable At common law, mere harshness of a clause/contract was not enough to set it aside.
So, if a party wanted relief they needed to resort to some other vitiating factor such as misrepresentation, mistake, duress, undue influence or even fraud.
Equity has been prepared to set aside an unconscionable contract.
Unconscionable conduct is best defined by Kitto J, in Blomley v Ryan (1956) 99 CLR 362 at 415:
“Where one party to a transaction is at a special disadvantage in dealing with the other party because illness, ignorance, inexperience impaired faculties, financial need or other circumstances affect his ability to conserve his own interests, and the other party unconscientiously takes advantage of the opportunity thus placed in his hands”
The cases of Blomley v Ryan (1956) 99 CLR 362 and Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447 are the key to understanding this doctrine in Australia. Blomley v Ryan (1956) 99 CLR 362
Blomley Facts: Facts: Ryan sold his land, 3,666 acres at Boggabilla in...
View Full Document