Unconscionable Bargains in Irish Contract Law – King’s Inns | Annual Assignment 2024–2025

Specification

In Allied Irish Banks plc v DX & Anor. [2020] IECA 308, Noonan J observed (at [27]):

It seems to me that as an analysis of these authorities suggests that the court may set aside a transaction on the basis that it is improvident or unconscionable where the following factors are present;

1. The parties do not meet on equal terms, such that one is vulnerable to being taken unfair advantage of by the other. The categories of vulnerability are not closed and must depend on the facts of each case.
2. There is an inherent unfairness in the transaction, be it described as undervalue, or inadequacy of consideration, or otherwise.
3. There is an element of impropriety or moral culpability in the conduct of the party seeking to retain the benefit of the transaction.
4. The latter party knew, or ought to have known, of the other party’s vulnerability.
5. There is an absence of appropriate independent advice, be it legal or otherwise.

Critically analyse the above judgment of the Court of Appeal. In your view, should the Irish courts be more, or less, willing to set a contract aside on the grounds of the unconscionable bargain? Explain your answer.

Instructions

• Support your answer by reference to relevant sources.
• Do not identify yourself on the assignment other than by stating your examination number on the cover page.
• The assignment must comprise at least 2,000 words but must not exceed 2,500 words.
• State the precise word count on the cover page.
• Footnotes and bibliography are excluded in word count, provided they are only for citations.
• Paginate the assignment and state the total number of pages on the cover page.
• Word process the assignment using appropriate legal language and style (see Chapter 7 of the Introduction to the Legal System Manual).
• Use a font size no smaller than 11pt.
• Plagiarism is prohibited (see Rule 29 of the Education Rules and pages 21–22 of the Diploma Student Handbook).
• Compile a research trail for your assignment.

Submission and Deadline

Submit the assignment on both Moodle and Turnitin no later than 6 p.m. on Monday, March 31.

The two electronic copies must be identical. Upon submission on Moodle, sign the assignment submission form.

Assignments submitted after the deadline will automatically fail unless the Registrar had extended the submission deadline.

Research Trails—Guide

A research trail is a written record of your research methodology. A good research trial demonstrates the following:

• You did your own research, and the assignment is your own work.
• You researched sensibly and methodically.
• You researched relevant and up-to-date sources.

Creating a Research Trail

In a series of numbered paragraphs, describe the sources you researched:

1. I began by consulting my notes about [relevant topic] for a general idea of the key principles and sources.
2. Having read those textbook chapters, I decided to look at key primary sources: [list of relevant legislation and cases].
3. I went to legal databases and performed searches using the following terms: [list search terms].
4. I noted relevant case laws and statutes and analyzed how they applied.

Ensure your research trail records search terms used, dates, and sources consulted.

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