Unconscionable Case Study
Unconscionable and Unenforceable
After a period of time, Walker has fallen behind on payments and is now in collections, her granddaughter has composed a letter in Walker’s behalf, stating that the entire deal is unconscionable and therefore unenforceable. In contract law an unconscionable contract is one that is unjust or extremely one-sided in favor of the person who has the superior bargaining power. Courts find that unconscionable contracts usually result from the exploitation of consumers who are often poorly educated, impoverished, and unable to find the best price available in the competitive marketplace.” (Legal dictionary, para. 2). In Walker’s situation, she would have a chance in court to prove that Takem’s business has displayed “an inequality of bargaining power,” as citied in Tillman v. Commercial Credit Loans, Inc., (Becker & Sechrist, 2014, p. 636). This type of inequality is referred to procedural unconscionability, whereas, “concerns are in the formation of the contract, with courts often focusing on the relative bargaining powers of the parties and their ability to understand the terms of the agreement” (Bagby & Souza, 2013, p. 194). Due to Walker’s lack of education, and the outlandish additional fees, a court may rule that this contract is unconscionable.
As stated previously, Takem’s contract with Walker “lacks enforceability,” rather than, is an unenforceable contract, due to the fact that in Virginia:
If the court as a matter of law finds a lease…