Sunday, December 31, 2006

Q. Do employment terms need to be fair?

A. Employment terms unenforceable without equal bargaining power of negotiation.

According to Sheridan’s Fraud in Equity (London, 1957), at p. 73:

The cases in which equity has relieved from a bargain where there is no misrepresentation, no fiduciary relation, no mistake or undue influence or duress, and no question of a party being an expectant heir or the like, are difficult to classify. Probably the only safe generalisation is that the court considers each case on its individual merits to see whether one party has taken advantage of the weakness or necessity of the other to an extent which strikes the judge as being a greater advantage than the current morality of the ordinary run of business men allows.

In many cases, arguable that employer exploited unequal bargaining power in forcing unconscionable restraint of trade provisions against employee’s free bargaining will.

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