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What is unconscionability?

Court refuses to enforce a contract that is unfair or oppressive because of procedural abuses during formation or overreaching terms (Unconscionability had to exist at the time contract was made, not because of later events)


What Is the result of unconscionability?

Can make a contract void, or just an offending oppressive clause can be excused


What are the two different types of unconscionability?

Procedural and substantive


What is procedural unconscionability?

Unconscionable bargaining process. Unfair surprise because party has superior bargaining power over the other, or no knowledge because of inconspicuous print/unintelligible language/no opportunity to read contact


What is an example of procedural unconscionability?

Party writing the contract includes a term knowing it is unfair and that the party won't notice it and doesn't bring attention to it


What are the two different views about duty to read a contract?

- Traditional view: party is charged with knowledge whether he read it, understood it, or knew about it
- modern rule: parties only bound by provisions that are not unfairly surprising


Substantive unconscionability?

Terms of the contract are oppressive, unduly harsh, and unfair


What is a possible remedy for unconscionability?

Blue pencil power of the court


What is blue pencil power of the court as a remedy for unconscionability?

If the court finds Unconscionability, they can do anything necessary to make the contract fair. Like rewrite the offense clause, strike it, avoid the whole agreement


What is reformation?

Records are rectified to conform to actual agreement of the parties. Corrects typos and inadvertent errors


What are the different things that could result in reformation?

Mistake, misunderstanding, misrepresentation, duress


What is needed to make a reformation for a mistake?

Need an agreement between the parties, to put it into writing, variance between previous agreement and the record


Can misrepresentation happen just by half truths?

Yes, like a mechanic saying your brakes are dangerous, and when you sell your vehicle and the buyer asks about them you say you just had them checked, you're suggesting they are OK even though you didn't technically lie


What are times that reformation cannot be used?

If it would stop the rights of a BFP, against a donor of a gratuitous gift, if there is been ratification, SOF doesn't apply to Reformation, and negligence doesn't bar reformation