Bank Of Australia V. Amadio's Case Study: Commercial Bank And Customer Relationship

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Register to read the introduction… For example, it could be the relationship between a bank and its customer, because of a special position of trust that the bank had come to occupy in connection with the conduct of this customer's affairs. (It has been stressed, however, that in ordinary circumstances no presumption of undue influence arises out of a banker-customer relationship.) See for example, Commercial Bank of Australia v Amadio (1983) 151 CLR 447 (for a summary of Amadio's case, see: "Unconscionable conduct", in Chapter 12*3 Consumer Protection Legislation).

The consequence of establishing undue influence is that the contract may be held voidable at the election of the wronged party.

For details of complaints of undue influence in relation to some types of loan contracts and related complaints of unjust contract, unconscionable dealings, harsh and oppressive contracts, etc., see: "Unjust contracts, changes and charges", in Chapter 13 Credit and Finance.

Corporations are prohibited from engaging in unconscionable conduct in relation to the provision of goods or services by virtue of sections 21 and 22 of the ACL (see: "Unconscionable conduct", in Chapter 12*3 Consumer Protection
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Illegal and void contracts

The law will not enforce all contracts. There are some categories of contract to be wary of.

Where a contract is illegal, this may affect its enforceability. Contracts that are illegal by statute will be regulated as to enforceability by the statute; thus the statute will need to be read and interpreted. Contracts absolutely prohibited by statute will be void, whether the parties know of the illegality or not. However, where one party performs an otherwise legal contract in a manner that breaches legislation, the other party, if having no knowledge of the facts giving rise to the illegality, can still enforce the contract or recover damages for breach of it. They may also recover money or other property transferred under the contract.

Contracts made void by statute are treated differently; while they remain valid contracts, the courts will not enforce them. Again, the precise extent of the enforceability of, or the recovery of any money paid under, a void contract will depend on the particular statute.

Certain types of contracts are illegal at common law, because they are contrary to the public good. These include contracts:

◾to commit a crime, a tort or a

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