Question

Mary was a young widow lacking business experience. She owned a house in mid-level, Hong Kong....

Mary was a young widow lacking business experience. She owned a house in mid-level, Hong Kong. Norman, a stranger, rented the house for two years. During that time, he was very attentive to Mary, who was quite ill and easily influenced. Consequently, Mary sold the house to Norman for a very low price. After her recovery from illness, Mary wanted to have the agreement nullified. Discuss the legal position.

Homework Answers

Answer #1

Unwarranted impact arises where the parties to a contract have unsatisfactory negotiating power. The sturdier party will be able to control the feebler party and may insist on the inclusion of terms which are very unfair.

When a contract is made as a consequence of unwarranted impact, the contract is voidable by the weaker party.  

To prove unwarranted impact (in the absence of presumption), the feebler party must substantiate that he does not have a free and autonomous will at the time of contract and the other party has taken discriminating benefit of the state.

And there is no independent advice.

It is probable that the contract could not be set away due to unwarranted impact

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