Boustany v Pigott [1995] 69 P & CR 298

Lord Templeman

• There are several points regarding when and how equitable fraud can vitiate a contract:

  1. For equity to be invoked the agreement must be unconscionable in that “one of the parties to it has imposed the objectionable terms in a morally reprehensible manner”;

  2. “Unconscionable” relates to to the terms of the bargain AND to the moral culpability of the stronger party;

  3. There has to be both unequal bargaining power and an abuse of that power;

  4. There has to actually be unconscionable conduct  and it isn’t enough that the terms are unfair or imbalanced;

  5. The burden is on the party seeking relief to show unconscionable conduct, “namely that unconscientious advantage has been taken of his disabling condition or circumstances”.

     • Mckendrick: It is odd that the bargain was set aside despite Plaintiff getting good legal advice not to sign from the lawyer.