Catching Bargain

An agreement made with an heir expectant for the purchase of his expectancy at an inadequate price. Any agreement, whether by sale, mortgage, or post obit bond, on insufficient consideration, to be performed by the heir on the vesting of his expectancy. 47 Mich. 94; 7 Mass. 112; 63 Pa. St. 448; 34 Me. 447.

An agreement made with an heir expectant for the purchase of his expectancy at an inadequate price. In such cases the heir is, in general, entitled to relief in equity, and may have the Cas. 136; 1 P. Wins. 312: 1 Cro. Car. 7; Atk. 133; 2 Bwanst 147; L. R. 8 Ch. Ap. 4S4; L. R. 10 Bq. 641. It has been said that all persons dealing for a reversionary interest are subject to this rule: but it may be doubted whether the course of dec! authorizes so extensive a < and whether, in order to constitute a title to relief, the reversioner must not combine the character of lmir; 2 Bwanst 148, n. See l Ch. Pr. 112, 118, n.. 168, 828, BS8; mere hard bargain is not sufficient ground for relief* The English lawon this subject was altered by stat. 31 and 32 Vic. c. 4. Before that act slight inadequacy of consideration sufficient to set the contract aside; under the act onlv P°sitive unfairness was relieved against; Bisph. Bq. § 221. Under the Moneylenders' Act, 1900, the courts have power to re-open catching bargains where the tnterest is excessive and the transaction is unconscionable, and where the interest is excesslve and the transaction is such that a court of equity would give relief; [1906] A. C. 4G9; [1903] 1 K. B. 705; [1906] 1 K. B. 79, where 75 per cent was held reasonable under ^ circumstances This act does not include pawnbrokers, registered building or loan societies, banking or insurance companies, etc. Money lenders are subjected to having their contracts judicially varied in the interest of borrowers, but the rights of bona fide assignees or holders for value without notice may not De affected. Money lenders are obliged to register. Belloi, Bargains with Money-Lenders. See Chesterfield v. Janssen, 1 Lead. Cas. in Eq. 773, and notes. The contract may be for a loan, sale, annuit: mortgage; 16 Ves. 512; L. R. 10 Ch. Ap. 3S9; 26 Beav. 644; Butler v. Duncan, 47 Mich. 94, 10 N. W. 123, 41 Am. Rep. 711.