Chapter 19 Self-test questions

Chapter 19 Self-test questions

Unconscionable bargains and inequality of bargaining power
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. Which of the following was not a factor set out by the court in Fry v Lane as a necessary element for a contract to be set aside for unconscionability?

. A, a 70-year old woman, inherited a car from her late husband. The circumstances of his death meant that A was left with little and had to leave the home she lived in with her husband. A attempted to sell the car to earn money for a new home, but did not know of the value of the car or indeed anything about it. B, a car dealer, met A and offered to buy the car at a reasonable price. As the contract was negotiated, B inserted terms into the contract which required A to have the engine replaced, the car re-sprayed and new seat covers designed. B told A that this was so the car was usable on the road. A signed the contract of sale. Later on, A discovered from her husband's best friend that the car had recently been upgraded and B's demands were not at all necessary. A seeks to have the contract set aside for unconscionability. Which of the following requirements of her claim will not be made out?

. Undue influence deals exclusively with the manner in which the contract was concluded, whilst unconscionability deals exclusively with the substance of the contract. True or False?

. In Lloyds Bank Ltd v Bundy, Lord Denning abstracted an overriding principle of inequality of bargaining power from five principles of contract law. Which of the following was not one of the five principles?

. For what reasons has Lord Denning's principle of 'inequality of bargaining power' been rejected?

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