Unconscionable Bargain

Question 1

What is Unconscionable bargain?

Answer 1

A contract or agreement that is one sided, unfair and contrary to common sense or good conscience

Question 2

When Does Unconscionable bargain typically occur?

Answer 2

When one party takes advantage of the others significant disadvantage or vulnerability resulting in an extremly unfair outcome

Question 3

Key Elements

Answer 3

• Special disadvantage
• Knowledge of Disadvantage
• Victimisation/Exploitation

Question 4

Special Disadvantage

Answer 4

A special disadvantage occurs when one party to a contract is in a position of significant weakness or vulnerability that affects their ability to protect their own interests or make decisions freely.

Question 5

Knowledge of disadvantage

Answer 5

This refers to the stronger party being aware of the weaker parties special disadvantage

Question 6

Exploitation/Victimisation

Answer 6

The stonger party exploits or takes unfair advantage of the weaker party, leading to an agreement that heavily favours the stronger party