Image for Unconscionability in Contract Law

Unconscionability in Contract Law

Unconscionability in contract law refers to situations where a contract is so unfair or one-sided that it becomes unreasonable to enforce. It usually involves a significant imbalance in power between the parties, such as one party taking advantage of the other's lack of knowledge or bargaining power. Courts may reject or modify these contracts to prevent exploitation. Unconscionability typically involves two elements: procedural unconscionability (how the contract was formed) and substantive unconscionability (the terms of the contract itself). Essentially, it aims to protect individuals from oppressive agreements.