Ethical Implications in Contracts - Lack of Informed Consent

Lack of Informed Consent

Some acts cannot legally take place because of a lack of informed consent. This can occur under conditions of pressures of limited time, money, exhaustion and exhortations to settle from lawyers. Another person is generally authorised to give consent if an individual is unable to. These cases sometimes result in a party refusing to comply with the terms of the contract; however, they are rarely successful as a defense to an enforcement action. Judges usually take the view that a client advised by a lawyer is strongly presumed both to have a basic understanding of legal principle, and to have given consent (Informed Consent 2007). This was the case in Gerbert and Gerbert (1990) FLC 92-137, where a husband settled for 10% of assets against his probable entitlement to 40%, and it was held that there was no miscarriage of justice as the husband acted feely and was advised to seek legal advice. In cases where an individual is provided limited facts, serious ethical issues may arise.

Is it ethical to hold someone to a contract when they clearly had no awareness of exactly what they were signing and committing themselves to, due to ignorance or not? Is it ethical for a lawyer to encourage the signing of a document if they are clearly not fully understanding of the document?

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