Case Analysis : Unconscionable Contract Essay

791 Words Sep 27th, 2015 4 Pages
Amy entered into a contract to rent to own a home theater setup and later while window shopping she found the same system to buy for $1000. After unsuccessfully trying to cancel her contract with High Note, she alleges that the contract is unconscionable because it calls for a sales price several times greater than the prevailing market price of the Alpo XL2. Unconscionable contract simply means one party of the contract benefits substantially over the other one (Cheeseman H. R., 2012, pp. 218,338). This type of contract leaves one party no real, meaningful choice, usually do to major differences in bargaining power between the parties. A contract is made unconscionable due to, undue influence, duress, unequal bargaining power, unfair surprise, or limiting warranty. Undue Influence is when one party experiences an unduly amount of pressure to enter into a contract with another party (Cheeseman H. R., 2012, pp. 228-229). Usually one party exploits the other. Duress is where one party uses dangers with a specific outcome to get the other to consent to the contract terms (Cheeseman H. R., 2012, p. 228). This can take the type of physical dangers, or different sorts of dangers. Unequal bargaining power happens where one party has a significant amount of leverage over the other (Cheeseman H. R., 2012, p. 191). This is normally demonstrated if one party is mindful that the other clearly did not comprehend the contract terms. Unfair surprise when the party who makes the contract…

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