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Part II Grounds, 7 Mistake, Impaired Capacity, and Unconscionable Bargains

Dominic O’Sullivan

From: The Law of Rescission (3rd Edition)

Dominic O'Sullivan KC, Steven Elliott KC, Rafal Zakrzewski

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 14 April 2024

Illegality and contract — Performance of contract — Termination/unwinding of contract — Validity of contract

This chapter discusses mistakes, impaired capacity, and unconscionable bargains as grounds for rescission. It explains how the complainant cannot bargain to protect their interests if an impairment had been recorded. The counter-party’s knowledge of impairment would be relevant, as it would trigger unconscionable bargains and moral acceptability, but it does not always lead to a rescission of the case. While mistakes are not common grounds for rescission, the chapter looks into special doctrines of rescission for mistakes. It also lists mental infirmity and intoxication as examples of impaired capacity. Meanwhile, the unconscionable bargain is often associated with constructive fraud or exploitation.

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