Which of the following is a true statement for unconscionable contracts? A. The doctrine of unconscionability can be used to relieve people of their bad bargains. B. Any contract between two parties with unequal bargaining power is unconscionable. C. If the court finds a term of a contract to be unconscionable, it must hold the entire contract to be illegal and unenforceable. D. A court may refuse to enforce an unconscionable contract as contrary to public policy.

Question

Ruth Houston

Law

7 January, 07:43

Which of the following is a true statement for unconscionable contracts? A. The doctrine of unconscionability can be used to relieve people of their bad bargains. B. Any contract between two parties with unequal bargaining power is unconscionable. C. If the court finds a term of a contract to be unconscionable, it must hold the entire contract to be illegal and unenforceable. D. A court may refuse to enforce an unconscionable contract as contrary to public policy.

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Ruth Archer · Answer 1

D. A court may refuse to enforce an unconscionable contract as contrary to public policy.

Explanation:

An unconscionable contract is a contract that is extremely one-sided. In this type of contracts, one of the parties has no real choice to not participate. This is most often a consequence of the power and bargaining differences between the parties. When a court finds that a contract is unconscionable, they might declare it to be contrary to public policy. They might determine that the parties are to be released from their contract obligations.