Question

Which of the following is a true statement for unconscionable contracts? A. The doctrine of unconscionability can be used to relieve people of their bad bargains.B. Any contract between two parties with unequal bargaining power is unconscionable.C. If the court finds a term of a contract to be unconscionable, it must hold the entire contract to be illegal and unenforceable.D.A court may refuse to enforce an unconscionable contract as contrary to public policy.

Answer 1

The true statement concerning unconscionable contracts is that a court may refuse to enforce an unconscionable contract as it is contrary to public policy, not necessarily declaring the entire contract illegal, nor is every contract with unequal bargaining power unconscionable.

Step-by-step explanation:

The question relates to the concept of unconscionable contracts within the field of law. Unconscionable contracts are those that are so unfairly one-sided that they shock the conscience of the court. The doctrine of unconscionability allows courts to refuse to enforce certain contracts or clauses within contracts that are deemed to be unconscionable. Two critical statements that need clarification are:

• The doctrine of unconscionability may allow courts to relieve people of their bad bargains if those bargains are found to be shockingly unfair.
• A court may refuse to enforce an entire contract or just portions of it if it finds terms to be unconscionable, doing so in a manner that aligns with public policy.

It's important to note that not all contracts between parties with unequal bargaining power are considered unconscionable; there must be elements of unfairness and surprise. Similarly, a court can choose to sever the unconscionable terms and enforce the remainder of the contract rather than declare the entire contract unenforceable. Hence, the true statement according to the doctrine of unconscionability, is that a court may refuse to enforce an unconscionable contract as contrary to public policy.

Answer 2

D.A court may refuse to enforce an unconscionable contract as contrary to public policy.

Step-by-step explanation:

An unconscionable contract is a contract that is extremely one-sided. In this type of contracts, one of the parties has no real choice to not participate. This is most often a consequence of the power and bargaining differences between the parties. When a court finds that a contract is unconscionable, they might declare it to be contrary to public policy. They might determine that the parties are to be released from their contract obligations.