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LSDefine

Simple English definitions for legal terms

Unconscionability

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A quick definition of Unconscionability:

Unconscionability: When a contract is really unfair to one person and it seems like the other person was being mean or tricky when they made the contract, the court might decide not to make the unfair parts of the contract happen. This is called unconscionability. It's most likely to happen when the person who got the bad deal didn't really have a choice and the contract was really unfair in more than one way.

A more thorough explanation:

Unconscionability

Unconscionability is a defense against the enforcement of a contract or a part of a contract. It means that if a contract is unfair or oppressive to one party in a way that suggests abuses during its formation, a court may find it unconscionable and refuse to enforce it. A contract is most likely to be found unconscionable if both unfair bargaining and unfair substantive terms are shown. An absence of meaningful choice by the disadvantaged party is often used to prove unfair bargaining.

Example 1: A landlord forces a tenant to sign a lease agreement that includes a clause stating that the tenant cannot sue the landlord for any reason. This clause is unconscionable because it takes away the tenant's legal rights and protections.

Example 2: A car dealership sells a car to a customer and includes a clause in the contract that states the customer cannot return the car for any reason. This clause is unconscionable because it takes away the customer's right to return a defective product.

These examples illustrate how a contract can be considered unconscionable if it includes terms that are unfair or oppressive to one party. In both examples, the disadvantaged party (the tenant and the customer) did not have a meaningful choice in the matter and were forced to agree to the unfair terms in order to obtain the service or product they needed.

Uncommitted credit facility | unconscionable

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