Mrs North,who had limited business experience,mortgaged her property to a finance company to raise money for her husband's business.The contract greatly favoured the finance company.Two people have advised Mrs North against taking out the loan - her son,who was an accountant,and a barrister,who is a friend of the family.Mr North's business failed and the finance company has moved to sell up the property.Mrs North has been advised the finance company cannot sell up her house if she can prove that the mortgage contract was unconscionable.What is her legal position?

Question

Quizplus · Accepted Answer

The contract being unfair does not automatically make it unconscionable. Unconscionability requires a significant imbalance in the parties' rights and obligations, often involving exploitation of a party's lack of understanding or bargaining power. Mrs. North's lack of business experience and the advice she received may not be sufficient to prove unconscionability.

Mrs North,who Had Limited Business Experience,mortgaged Her Property to a Finance