Torts and Contracts II Summary Notes, Schemes and Mind Maps of Law

Download Torts and Contracts II Summary Notes and more Schemes and Mind Maps Law in PDF only on Docsity! TORTS AND CONTRACTS II SUMMARY NOTES REBECCA YAN (SEM 2, 2016) TCII SUMMARY NOTES 2 UNFAIR & UNCONSCIONABLE DEALINGS  Circumstances preceding or surrounding contract formation may vitiate the contract and entitle parties to rescind the contract  Rescission – act of electing to release the parties from a contract that has been vitiated o Contract is not void but remains in existence until party rescinds contract  Grounds that may give rise to right of rescission: o Undue influence o Unconscionability (common law & statute) o Yerkey v Jones Principle o Mistake o Misrepresentation (common law & statute) UNDUE INFLUENCE  One party has exercised such a large influence over another party that law wishes to protect influenced party. o May be at tension with traditional principles including freedom of contract Following principles set out in Johnson v Buttress Presumed undue influence  Once presumption established, onus is on influencing party to disprove existence of undue influence.  Can be established on 2 grounds: o Recognised or established relationships: e.g. parent and child, guardian and ward, solicitor and client, doctor and patient, religious/spiritual leader and followers, trustee and beneficiary.  Spousal relationships are not established category o Specific (ad-hoc relationship): past dealings between parties to a contract and relationship between parties can be equated with that of a category of established relationships.  Natural dominance can be shown with a corresponding dependence or trust in the other party which causes inherent inequality in dynamic between parties o Even if not in recognised category, claimant may bring evidence to prove relationship is one of trust and confidence  Rebutting presumption: alleged influenced party brought voluntary and independent mind to decision to enter into contract