CATCHING BARGAIN. An agreement made with an heir expectant for the pur chase of his expectancy at an inadequate price.
In such cases the heir is, in general, en titled to relief in equity, and may have the contract rescinded upon terms of redemp tion; 1 Vern. 167, 320, n.; 2 Cox 80; 2 Ch.
Cas. 136; 1 P. Wms. 312; 1 Cro. Car. 7; 2 Atk. 133; 2 Swanst. 147; L. R. 8 Ch. Ap. 484; L. R. 10 Eq. 641. It has been said that all persons dealing for a reversionary in terest are subject to this rule; but it may be doubted whether the course of decisionr authorizes so extensive a conclusion, and whether, in order to constitute a title to re lief, the reversioner must not combine the character of heir ; 2 Swanst. 148, n. See 1 Ch. Pr. 112, 113, n., 458, 826, 838, 839. A mere hard bargain is not sufficient ground for relief.
The English law on this subject was alter ed by stat. 31 and 32 Vic. c. 4. Before that act slight inadequacy of consideration was sufficient to set the contract aside; under the act only positive unfairness was relieved against; Bisph. Eq. § 221. Under the Mon eylenders' Act, 1900, the courts have power to re-open catching bargains where the in terest is excessive and the transaction is un conscionable, and where the interest is ex cessive and the transaction is such that a court of equity would give relief; [1906] A.
C. 469; [1903] 1 K. B. 705 ; [1906] 1 K. B. 79, where 75 per cent. was held reasonable under the circumstances. This act does not include pawnbrokers, registered building or loan so cieties, 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 as signees or holders for value without notice may not be affected. Money lenders are ob liged to register. Bellot, Bargains with Mon ey-Lenders. See Chesterfield v. Janssen, 1 Lead. Cas. in Eq. 773, and notes. The con tract may be for a loan, sale, annuity, or mortgage; 16 Ves. 512; L. R. 10 Ch. Ap. 389 ; 26 Beay. 644; Butler v. Duncan, 47 Mich. 94, 10 N. W. 123, 41 Am. Rep. 71L