Substantive Unconscionability Law & Legal Definition


Substantive unconscionability refers to the unconscionability in the terms of a contract. It means that the objective terms of the contract are unfair. Substantive unconscionability results when contract terms are excessively oppressive or harsh. Substantive unconscionability involves cases where the terms of bargain themselves disclose that transaction may be suspect. The doctrine of unconscionability permits a court to refuse to enforce a contract when it feels the contract is unfair.

In Lemke v. Arrowood, 2000 WI App 32 (Wis. Ct. App. 1999), the court held that substantive unconscionability means the terms of the contract unreasonably favor one of the parties.