Glossary · Contracts
Unconscionability
unconscionability-644a994050e9392b-2026-07-28
- Type
- Glossary
- Jurisdiction
- National
- Date
- 2026-07-28
- Topic
- Contracts
A defense that lets courts refuse to enforce a contract or clause that is grossly unfair. It usually requires both procedural unfairness, such as fine print, no meaningful choice, or unequal bargaining power, and substantive unfairness in the terms themselves. Courts may void the whole agreement or simply strike the offending term.
Definition
A defense that lets courts refuse to enforce a contract or clause that is grossly unfair. It usually requires both procedural unfairness, such as fine print, no meaningful choice, or unequal bargaining power, and substantive unfairness in the terms themselves. Courts may void the whole agreement or simply strike the offending term.
Unconscionability. A defense that lets courts refuse to enforce a contract or clause that is grossly unfair. It usually requires both procedural unfairness, such as fine print, no meaningful choice, or unequal bargaining power, and substantive unfairness in the terms themselves. Courts may void the whole agreement or simply strike the offending term. Example: The court found the payday loan's 400 percent effective interest rate unconscionable and refused to enforce it.