Definition - What does Unconscionability mean?

Unconscionability, or an unconscionable contract, is a legal basis for the refusal to enforce a contract in its entirety or in part. A court will typically rule in favor of someone claiming unconscionability when there is evidence that the agreement is blatantly one-sided. There must also be proof that one party knowingly constructed the contract in a manner conducive to exploitation of the other.

Justipedia explains Unconscionability

Unconscionability occurs when one party coerces the other into signing the agreement through the use of threats or extreme pressure. Another example is a case in which one party includes an unreasonable stipulation or stipulations in the contract without the other party's knowledge. It also occurs when one person's options are significantly limited under the terms of the contract.

In most cases in which a court finds there is unconscionability, the contract is voided in part or whole. However, those are not the only options. The judge can also order that the portion of the contract deemed unconscionable is changed to reflect acceptable terms.

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