Unconscionable Contract Case Study

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 …show more content…
An infant is defined as a minor child from the age of 18 and below or 21, contingent upon the specific jurisdiction (Cheeseman H. R., 2012, p. 207). A contract made by an infant is voidable however is legitimate and enforceable until or unless they disaffirms it. They may avoid the legal obligations needed to perform the contract’s terms with no risk for a breach of contract. Infants are treated in such a way because public policy deems it desirable to protect the immature and naive infant from liability for unfair contracts that he or she is too inexperienced to negotiate on equal terms with the other