unconscionability tests

Unconscionability tests assess whether a contract is so unfair or one-sided that it shocks the conscience. Courts look for two main factors: procedural unconscionability, which examines how the agreement was formed (e.g., if there was pressure or unequal bargaining power), and substantive unconscionability, which evaluates the actual terms of the contract (e.g., if the terms are excessively harsh). If both elements are present, a court may refuse to enforce the contract or specific clauses, ensuring that individuals are protected against exploitation in agreements that are grossly unfair.