unconscionable contract theory

Unconscionable contract theory refers to a legal principle that invalidates agreements which are so unfair or oppressive that they shock the conscience of the court. It involves two key elements: substantive unfairness (such as extremely unbalanced terms) and procedural unfairness (like one party’s lack of genuine consent or significant bargaining power). Courts examine whether the terms are excessively unjust and whether the weaker party was unfairly pressured or misled into agreement. If both elements exist, the contract or specific provisions can be declared unenforceable, ensuring that parties are not bound by fundamentally unjust deals.