
When is a Contract Provision Unconscionable?
While two people generally have the freedom to enter into a contractual agreement with one another, there are some limits. One party cannot strike a bargain that takes advantage of their bargaining power that is so significantly unfair and unbalanced that it would be considered unconscionable. In that case, the court may decline to enforce the agreement. An unconscionable contract is one that is unfair and oppressive to another party. The terms of the contract would suggest that one party had much more power in the formation and took advantage of it through these contract terms. This contract is so one-sided that requiring performance would be unjust. This is one example where a court would intervene to save someone from themselves when they have agreed to a lopsided contract. The…