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Hancock Bank & Trust Co. v. Shell Oil Co.

Supreme Judicial Court of Massachusetts

309 N.E.2d 482 (1974)

Contracts
Relevant factsFree

Shell Oil Co. (defendant) leased property in 1962 for fifteen years, with an option to extend for another fifteen and a right to terminate on ninety days' notice. Hancock Bank & Trust Co. (plaintiff) later acquired the property at a foreclosure auction and sought to void the lease as unfair to it, arguing its terms were so one-sided as to violate public policy. The trial court upheld the lease, and Hancock appealed.

IssueFree

Whether a contract based on adequate consideration is voidable as a violation of public policy simply because it constitutes a bad bargain for one of the parties.

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