Unconscionable in legal terms refers to a contract or bargain
which is so unfair to a party that no reasonable or informed person would
agree to it. In a suit for breach of contract, a court will not enforce
an unconscionable contract. The court in such a case will determine that
to enforce the contract would be grossly unfair to one of the parties based
upon their being misled, lacking information or signing under duress or
misunderstanding, often due to the acts of the person seeking enforcement.
The following is an example of a state statute dealing with unconscionable
clauses in contracts:
- If the court as a matter of law finds the contract or any clause
of the contract to have been unconscionable at the time it was made the
court may refuse to enforce the contract, or it may enforce the remainder
of the contract without the unconscionable clause, or it may so limit the
application of any unconscionable clause as to avoid any unconscionable
result.
- When it is claimed or appears to the court that the contract or
any clause thereof may be unconscionable, the parties shall be afforded
a reasonable opportunity to present evidence as to its commercial setting,
purpose and effect to aid the court in making the determination."
