Unconscionability

In one sentence

A contract term so unfair and one-sided that a court will refuse to enforce it.

Plain English

Unconscionability means a contract or clause is shockingly unfair—so lopsided that it offends basic fairness. Courts look at two things: whether the process was unfair (like one party had no real choice) and whether the actual terms are unreasonably favorable to one side. A court can refuse to enforce the entire contract or just the unfair parts.

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Example

A car dealership presents a financing contract to a customer with limited education, using tiny print and complex language. The contract includes a clause allowing the dealer to repossess the car and keep all payments if the buyer misses even one payment, with no grace period. A court might find this unconscionable because the customer had no real bargaining power and the term is shockingly one-sided.

Used in a sentence

“The judge ruled the arbitration clause unconscionable because it stripped the consumer of all legal remedies.”

Related terms

Capacity

The legal and mental ability to enter into a binding contract.

Duress

Forcing someone to sign a contract through threats or coercion.

Undue Influence

Improper pressure from someone in a position of trust that undermines a person's free will.

Implied Covenant of Good Faith and Fair Dealing

An unwritten promise in every contract that parties will act honestly and fairly toward each other.

Severability Clause

A provision stating that if one part of a contract is invalid, the rest remains enforceable.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.