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Difference between revisions of "Contract Defences"
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→Unfairness of bargain
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==== Unfairness of bargain==== | ==== Unfairness of bargain==== | ||
Several common law grounds deal with contracts that are '''fundamentally unfair'''. In many instances, these principles overlap: | Several common law grounds deal with contracts that are '''fundamentally unfair'''. In many instances, these principles overlap: | ||
* '''Unconscionability | * '''Unconscionability''': A contract is said to be unconscionable if a stronger party uses power to gain an unfair advantage over a weaker one. Inequality between the parties created by one party’s ignorance, need or distress can result in substantial unfairness in the overall bargain; for example, with one party setting an inordinately high or low price. Notable BC cases on unconscionability are [http://canlii.ca/t/gd7z1 ''Morrison v. Coast Finance Ltd.''] and [http://canlii.ca/t/1dm18 ''Waters v. Sun Route Tours Inc.'']
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* '''Under duress | * '''Under duress''': External coercion or compulsion exerted by one party against another can result in a contract being made under duress or force. Compulsion may be physical, psychological or economic. The most obvious example of duress is if one party is threatened with physical harm unless they enter into an agreement.
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* '''Undue influence | * '''Undue influence''': Undue influence is when one party uses the other party’s confidence in them to gain an advantage. The confidence may arise from the nature of the relationship, such as between members of a family, or between professionals and their clients.
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=== Statutory defences=== | === Statutory defences=== | ||