A party who wants to avoid a contract on the basis of unconscionability must prove all of the following except:
A) the parties possessed severely unequal bargaining power.
B) the weaker party was fraudulently misled into entering the contract.
C) the dominant party unfairly used its unequal bargaining power to obtain oppressive or unfair contract terms.
D) the weaker party had no reasonable alternative.
E) Unconscionability is not a reasonable basis, either legally or equitably, for avoiding a contract obligation.

Question

Quizplus · Accepted Answer

While fraudulent misrepresentation can be a basis for avoiding a contract, it is not a necessary element to prove unconscionability. Rather, the party must prove that there was a significant imbalance of bargaining power, the resulting contract terms were oppressive, and the weaker party had no reasonable alternative. Additionally, option E is incorrect - unconscionability is a recognized basis for avoiding a contract obligation in certain circumstances.

A Party Who Wants to Avoid a Contract on the Basis