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Now answer the following problem question using the

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Now answer the following problem question using the IRAC method. You must examine the elements of unconscionable conduct from Amadio’s case in your answer. Mark wishes to purchase a particular item. He investigates the price being charged for the item and discovers that there has been a recent price rise from $500 to $900. He then happens to visit a shop where the price of the item is $500 and Mark realises that the shop owner is not aware of the recent price increase. Mark buys the item knowing that the retailer has overlooked or has not yet become aware of the price increase. Does Mark’s behaviour constitute unconscionable conduct? The issue is to determine whether Mark operated under unconscionable conduct when he bought the item for $500 rather than $900. In the case of Lloyds Bank Ltd v Bundy, Lord Denning summarised unconscionable conduct by referencing the fact that the parties were not meeting on equal terms, and concluded that the common thread running through the cases was ‘an inequality of bargaining power’. As the store owner was unaware of the price increase, it can be said that Mark and the owner were on unequal bargaining ground. There are four elements that must be proven to set aside a contract of unconscionable conduct. First, the plaintiff as in a position of special advantage. Second, special advantage substantially affected plaintiff’s ability to protect themselves. Third, defendant knew, or ought to have known, of the plaintiff’s disability and took advantage of it. Fourth, the
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actions of the defendant were unconscionable. In the case of Commercial Bank of Australia Ltd v Amadio, the bank’s conduct was found to be unconscionable. The Amadio’s were under a special disability, which the bank were aware of. It was the bank’s awareness of the disability that made its conduct unconscionable. The outcome of this case can be applied to the situation of Mark and the store owner. Mark was aware of the store owner’s disability and took advantage of it. If the store owner was aware of the price increase and decided not to act on it, then Mark’s purchase would have been found conscionable. However, it cannot be determined whether the store owner was aware or not. In conclusion, if the store owner was unaware of the price increase, Mark would have been operating under unconscionable conduct, and therefore the contract set aside. In Garcia case, married women have business. Divorced, bank force the guarantee of she had. She given no independent advice. The court refuses the bank to enforce the guarantee. BLO1105 – Tutorial Eleven Answer Guide Exercise 11.1 Duress 1) What are the types of duress recognised by the courts? Answer: There are 3 types of duress recognised by the courts: Duress to person: Barton v Armstrong Duress to goods: The Sibeon and The Sibotre Economic duress: Hawker Pacific v Helicopter Charter (could be considered both duress to goods and economic duress) , Universal Tankships of Monrovia v International Transport Workers Federation
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2) What is the effect of a person entering into a contract under duress?
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