Boustany v Pigott (1995)

Court of Appeal

Basic Facts: C (an elderly landlady) was persuaded by D (a tenant) to agree to a new lease with terms less favorable to her while her cousin G (who managed her affairs) was away. Although C received legal advice, D took advantage of her vulnerability.

Issue for the Court: What are the requirements for setting aside a transaction due to exploitation or duress?

Held : The court held that a transaction can be set aside if it is unconscionable and involves taking unfair advantage of one party.

• Lord Templeman emphasized that it is not enough for a transaction to be unreasonable; it must be unconscionable, involving morally reprehensible conduct. Even with legal advice, if one party’s behavior is egregious, the transaction can be set aside.

💡Leveluplaw : This case reinforced the principle that unconscionable conduct in transactions can justify setting aside a contract, focusing on the conduct of the stronger party and its impact on the weaker party.