United Kingdom mental incapacityunconscionable bargain

Hart v O'Connor

[1985] AC 1000; [1985] UKPC 1 (BAILII filed as [1985] UKPC 17)

JurisdictionUnited Kingdom

CourtJudicial Committee of the Privy Council (on appeal from New Zealand)

Year1985

StatusPersuasive authority

Key Principle

The validity of a contract made by a person who is mentally incapable but ostensibly sane is to be judged by the same standards as a contract by a person of sound mind, and is binding unless the other party knew of (or ought to have known of) the incapacity; mere contractual imbalance, absent unconscionable conduct by the stronger party, does not justify setting the bargain aside.

Area of Law

Contract and Commercial

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RTS Flexible Systems Ltd v Molkerei Alois Müller GmbH & Co KG [2010] UKSC 14

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