Multiservice Bookbinding Ltd -v- Marden; ChD 1978

References: [1978] 2 All ER 489, [1979] Ch 84
Coram: Browne-Wilkinson J
To have a transaction set aside as a harsh and unconscionable bargain, a party would have to show not only that the terms of the transaction were harsh or oppressive, but also moral unfairness. Browne-Wilkinson J said: ‘In my judgment a bargain cannot be unfair and unconscionable unless one of the parties to it has imposed the objectionable terms in a morally reprehensible manner, that is to say in a way which affects his conscience’. The court may allow for the question of whether the borrower received independent advice.
This case cites:

  • Cited – Cityland and Property (Holdings) Ltd -v- Dabrah ([1968] Ch 166)
    The mortgage secured a debt of £2,900 owing by the mortgagor to the mortgagee. The mortgagor covenanted to pay the mortgagee £4,553 by monthly instalments over a six year period. The return to the mortgagee was in the form of a premium . .
  • Cited – Knightsbridge Estates Trust Ltd -v- Byrne CA ([1939] 1 Ch 441)
    The company mortgaged properties in London to secure an advance from a Friendly Society. A clause of the mortgage provided for repayment by eighty half-yearly instalments. The mortgage further provided that if the mortgagor paid the instalments on . .

This case is cited by:

  • Cited – Portman Building Society -v- Dusangh and Others CA (Bailii, [2000] Lloyd’s LR 19, [2000] EWCA Civ 142, [2000] 2 All ER (Comm) 221)
    The defendant sought to set aside an order for possession under a mortgage.
    Held: Where a case was strong enough on its face in terms of conduct and terms, unconscionable conduct could be inferred if there was no explanation offered to . .
  • Cited – Portman Building Society -v- Dusangh and Others CA (Bailii, [2000] Lloyd’s LR 19, [2000] EWCA Civ 142, [2000] 2 All ER (Comm) 221)
    The defendant sought to set aside an order for possession under a mortgage.
    Held: Where a case was strong enough on its face in terms of conduct and terms, unconscionable conduct could be inferred if there was no explanation offered to . .
  • Cited – Brighton & Hove City Council -v- Audus ChD (Bailii, [2009] EWHC 340 (Ch), [2009] 9 EG 192, [2010] 1 All ER (Comm) 343, [2009] NPC 31)
    The claimant was the proprietor of a fourth legal charge on a title. It sought a declaration that a second charge in favour of the defendant was void as a clog on the proprietor’s equity of redemption. An advance secured by a first charge, also in . .
  • Approved – Credit Lyonnais Bank Nederland Nv -v- Burch CA (Bailii, [1996] EWCA Civ 1292, [1997] 1 All ER 144, [1997] 2 FCR 1, [1997] 74 P & CR 384, [1997] 29 HLR 513, [1997] Fam Law 168, [1997] 1 FLR 11)
    The defendant had charged her property to secure her employer’s debt. When the bank sought repossession, she said that the charge had been affected by the undue influence and that the terms of the charge were so harsh and inconscionable that a court . .
  • Cited – Ramzan -v- Brookwide Ltd ChD (Bailii, [2010] EWHC 2453 (Ch), [2011] 2 All ER 38)
    The claimant owned a flying freehold room butting into the defendant’s property. Whilst the claimant’s property was unoccupied, the defendant broke through into the room, blocked off the door to the claimant’s property, and included the room in the . .

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