When parties enters into a contract where a claim is made that a bargain is unconscionable, which of the following is correct?
A) There is an automatic presumption of undue influence due to the relationship of the parties.
B) A close relationship between business associates prevents a finding of unconscionability.
C) When one party lacks the intellect to enter into a contract, the contract continues to be binding on both parties.
D) A presumption of fraud is raised when there is an inequality in the position of the parties due to the ignorance of the weaker party.
E) Because a party to the contract is an uneducated immigrant, the contract is voidable.

Question

Quizplus · Accepted Answer

Unconscionability in contract law often involves situations where there is a significant inequality between the parties, particularly where the weaker party's ignorance is exploited. This can raise a presumption of fraud, as the imbalance may indicate that the weaker party was unfairly taken advantage of, making the contract potentially voidable or subject to revision.

When Parties Enters into a Contract Where a Claim Is