ABA Family Legal Guide

Contracts and Consumer Law

Introduction to Contracts

Changing Situations

May someone have a contract set aside because it simply isn't fair?

It is possible, but not likely. Courts have a powerful weapon called unconscionability at their disposal. Unconscionability means that the bargaining process or the contract's provisions "shock the conscience of the court." For example, selling $10,000 worth of rumba lessons to a ninety-five-year-old widow living on Social Security would probably be held unconscionable. An unconscionable contract is grossly unfair. Its terms suggest that one party took unfair advantage of the other during negotiations. The courts are reluctant to use this weapon, but consumers have a better chance with it than anyone else, especially in installment contracts. You might ask, why would anyone sign such a contract? The answer is that unfairness is usually accompanied by procedural problems, like obscure language, or lack of choice.

Though courts sometimes will void contracts on these grounds, unconscionability is uncommon. Make the effort to understand all the terms of a contract.