Unconscionability

Question 1

Unconscionable contract

Answer 1

a contract which no one in her right senses and not under a delusion would make.
- considers the what and how of the deal

Question 2

when must it be unconscionable

Answer 2

at the time of making

Question 3

Procedurally unconscionable

Answer 3

procedural = absence of meaningful choice
Unequal bargaining power?
Lack of opportunity to stuffy the contract and inquire about the terms?
Non-negotiable terms?

Question 4

Substantive unconscionable

Answer 4

Substantive – look at terms to see if they are unfairly one-sides
- Is there a large disparity between the prevailing market price and the contract price?
Were the terms of the contract unreasonably favorable to the party?

Question 5

If the contract is unconsc. courts will:

Answer 5

Allow parties to avoid the contract
remove unconscionable terms