2021 01 26 Module 3A

Contract law hinges on vitiating elements that render agreements voidable or void, primarily misrepresentation, mistake, duress, undue influence, and unconscionability. Misrepresentation requires precise definitions, with negligent misrepresentation serving as a critical claim due to its reversed burden of proof and significant damage awards. Undue influence, an equitable doctrine, differentiates between actual pressure and presumed influence, where independent legal advice acts as a vital safeguard. The Unconscionable Contracts Ordinance provides a framework for protecting consumers, exemplified by the *Hang Seng* credit card case, which established that courts—not banks—hold sole discretion over legal costs. While the ordinance offers consumer protection, it remains limited by its exclusion of land-related contracts and the placement of the burden of proof on the consumer, necessitating reliance on common law principles for broader legal challenges.