Lecture 5 - Vitating Factors 250911

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Unformatted text preview: exhaustive list of matters which can be taken into account in determining whether a contract or part of a contract is unconscionable. These include, among other things, the followings: CM20278 Regulatory Framework 42 Business 2011 - 2012 for 1. 2. 3. 4. 5. the relative bargaining power of the parties; whether the consumer was required to comply with unreasonable conditions for the protection of the other party’s interests; whether the consumer was able to understand any documents relating to the supply of goods or services; whether any undue influence or pressure was exerted on, or any unfair tactics were used against the consumer; and the price which the consumer paid for the goods or service and the price the consumer would have to pay if he or she acquired them from other sources. CM20278 Regulatory Framework 43 Business 2011 - 2012 for 6. Illegality The court will not enforce a contract where its purpose is an illegal act or it would be against public policy (i.e. not in the general interests of society). Although the contract itself is valid the courts will not enforce it because of the illegality. A contract may be illegal at common law or by an ordinance. CM20278 Regulatory Framework 44 Business 2011 - 2012 for Example of an illegal contract at common law would be a contract involving sexual immorality. In Pearce v Brooks, a contract to commit crimes, tort, promoting corruption, prejudicial to the administration of justice or to defraud the Inland Revenue Department. CM20278 Regulatory Framework 45 Business 2011 - 2012 for An example of a contract...
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This note was uploaded on 04/01/2013 for the course ACCOUNTANC CM20249 taught by Professor Ta during the Spring '13 term at City University of Hong Kong.

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