Samuel v Jarrah Timber [1904]

Stock mortgaged to mortgagee, Samuel, to secure cash
advance.
Mortgagee given option to purchase whole or part of
stock at 40% at any time within 12 months.
Mortgagee claimed to exercise option.
House of Lords reluctantly held option void.
Lord MacNaghten –
Although the doctrine was long-established and must be
applied he would support its modification ‘to prevent its being used as a means
of evading a fair bargain come to between persons dealing at arms’ length and
negotiating on equal terms. The directors of a trading company in search of
financial assistance are certainly in a very different position from that of an
impecunious landowner in the toils of a crafty money-lender’