Defenses of contract - Defenses of contract: 1-...

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Unformatted text preview: Defenses of contract: 1- Unconscionability Unconscionable contracts are those that violate public policy by being so unjust as to offend the courts sense of fairness. Sometimes called contracts against public policy, unconscionable contracts usually result from a gross disparity in the parties bargaining power, as can happen when one party is a savvy business person and the other party is elderly, illiterate, or not fluent in English. But a mere disparity in bargaining power will not suffice to overturn an otherwise valid contract, unless a court finds that the resulting contract is one that no mentally competent person would enter and that no fair and honest person would accept. 2- Mistake The mistake must be a mutual one made by all of the parties to the contract. However, when the mistake is obvious from the face of the contract, knowledge of the mistake will be imputed to each party. Thus, a contract that by its terms designates a horse as the subject matter will be enforced unless both parties agree that a different subject...
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This note was uploaded on 10/28/2011 for the course BUSINESS ACCT 305 taught by Professor Poletti during the Spring '09 term at DeVry Columbus North.

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Defenses of contract - Defenses of contract: 1-...

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