Define the term "unconscionable" and describe the effect of an unconscionable contract.
Define the term "unconscionable" and describe the effect of an unconscionable contract.
Unconscionable:
Unconscionable defines that unusually harsh and shocking to the conscience. That is unconscionable contract are heavily inclined towards one party and inflict unfair and harsh conditions on the other party. In simple one party is one sided and unfair to other party so that situation is unenforceable under law. It provides the bargaining power between parties. Unconscionable contract have two types. These are
- Procedural
- Substantial
Procedural:
Procedural unconscionable explains actual bargaining process while making contract and how they became in the part of contract. It considers the terms such as Contracting parties, qualifications, age, intelligence and relative bargaining power of parties.
Substantial:
Substantial explains few unfair terms of the contract. That is it deals unfair price, Disclaimers, warranties, limitations of remedies and so on.
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