#6542 - Unconscionable Conduct - Equity

UNCONSCIONABLE CONDUCT EQUITY 16 UNCONSCIONABLE CONDUCT * * Types of unconscionable conduct include: o Fraud o Unconscionable dealings o Estoppel Can be used to set aside a contract Fraud: * Equitable fraud is the foundation for various doctrines: o Constructive trusts o Fiduciary breaches o Undue influence o Unconscionability * Equity is more expansive than common law "Breach of the sort of obligation which is enforced by a court that from the beginning regarded itself as a court of conscience" * Duress of undue influence or pressure in Equity * Preventing a statutory requirement from being an instrument of fraud * Fraud on a power * Innocent misrepresentation * Mistake * Equity will not permit a statute to be a cloak for an instrument of fraud o Statute of Frauds o Wills Act SS? Stipulate certain formalities Fraud on a power: * An authority to dispose of property irrespective of the donees existing interest o Donee = person exercising power (trustee/solicitor/agent) o Object = person to whom the property is disposed (beneficiary) o Donor = person conferring authority on the done (owner who gives power) * Legal power: o Power of attorney o Can happen when someone is still capable * Equitable power: o Power of a fiduciary o High standard of good faith EQUITY 17