Procedural Unconscionability Law & Legal Definition


Procedural unconscionability refers to the unconscionability in the conditions of contract formation. Procedural unconscionability results from inequalities between the parties as to age, intelligence, and relative bargaining power. It disclose that both parties did not freely consent to all terms proposed. The doctrine of unconscionability permits a court to refuse to enforce a contract when it feels that the contract is unfair.

In Nichols v. YJ USA Corp., 2009 U.S. Dist. LEXIS 22450 (D. Tex. 2009), the court held that procedural unconscionability means that oppression and unfairness must taint the negotiation process leading to the agreement's formation.

Procedural unconscionability centers on two factors in contract formation. They are oppression and surprise. Oppression results from the inequality in the bargaining power between the parties those results in the absence of opportunity to the parties. Surprise results from the supposedly agreed hidden terms. [Motsinger v. Lithia Rose-Ft, Inc., 211 Ore. App. 610 (Or. Ct. App. 2007)